Putin Warns of Inflation And Overheating in Russian Economy, Calls For Softer Economic Landing Amid Challenges

Benzinga 2024-12-19

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Russian President Vladimir Putin acknowledged that Russia's economy is facing inflation and overheating challenges, with the government and central bank working to stabilize growth. Putin highlighted inflation concerns during his annual Q&A session, noting that the consumer price index rose in November, driven by food price increases and a weaker ruble impacted by U.S. sanctions. Military spending has also fueled labor and production shortages, pushing up costs. Russia’s central bank is expected to raise its interest rate to 23%, the highest in a decade. Putin also mentioned rising wages and disposable incomes, emphasizing the need for a "soft landing" for the economy.

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