Russian inflation is unlikely to be tamed

Significance Inflationary pressures remain very strong at a time when they are subsiding in most other countries. Fighting inflation is the priority for the Central Bank of Russia (CBR), which raised the key rate to 19% last month to try to dampen aggregate demand. Impacts Price growth at the current levels remains well below the average rate of inflation observed in Russia since the 1990s. Prolonged inflation will become increasingly painful for low-income families. If the war ends and military spending is reduced suddenly, the economy faces the risk of a hard landing.