Russia’s annual inflation rate accelerated to 6.7% in October, failing to meet the officially target of 4%, the country’s federal statistics agency said Friday, as a weak currency and surging military spending push prices higher across the economy.
Moscow will raise its defense spending by 70% next year to a post-Soviet record of 6% of GDP, according to an annual budget approved by lawmakers.
Meanwhile record low unemployment after hundreds of thousands of workers have been called up to the army, fled to avoid being drafted or been redirected to work in arms factories, has created labor shortages across the economy.
Last month, Russia reimposed some currency controls after the ruble fell below the symbolic level of 100 against the U.S. dollar over the summer. It has since recovered to around 92.
As an Austrian, I’d love to have only 6.7%. How did they manage that? Austria is still somewhere around 8% last time I checked.
Austrian inflation for October 2023 is 5.4% (so 1.3% points less than the 6.7 that they had in October 2023 in Rusia). The ~8% was the inflation for 2022, where Russia had an inflation rate of 13.77%.
But to answer your question, starting a war definitely helped them getting a high inflation.
Source inflation Austria: https://www.infina.at/trends/statistik-inflation/#:~:text=Aktuelle Inflation in Österreich [Stand,deutliche 1%2C4 %25 gefallen. Source inflation Russia: https://de.statista.com/statistik/daten/studie/171867/umfrage/inflationsrate-in-russland/#:~:text=Im Jahr 2022 hat die,rund 5%2C28 Prozent prognostiziert.
Thank you for looking up the concrete numbers!
Probably by lying.