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Historic inflation weakens Russian economy

Inflation hasn't spared Russia. At his end-of-year press conference, Vladimir Putin himself acknowledged that inflation, a key indicator of an overheating economy, was a problem.

Officially, inflation in Russia is expected to reach 8-8.5%, double the target of 4%. Other estimates suggest it could be even higher.

Research firm ROMIR reported a year-on-year inflation rate of 22.1% in September, while official data shows an increase of 9.67%. Their analysis is based on the price of several consumer goods.

The price of butter, for example, increased by 25.7% between January 1 and October 28, leading some supermarkets to put their butter in plastic containers and import butter from Belarus and Turkey.

(MH with AmBar/Source: Agency/Photo: Nikita Karimov/Unsplash)

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