Putin’s economy is faltering as inflation bites (Image: Getty)
The media is in a state of panic , leaving many to struggle.
Moscow’s print news outlets, heavily controlled by Russian President , were uncharacteristically negative in their coverage as they raised concerns about the economic well-being of ordinary Russians.
As reported by the , the front page of Russian newspaper Nezavismaya Gazeta said: “Some “
The report highlighted that butter is 6.6% more expensive than it was in September, and 30% more expensive than this time last year.
Meanwhile, the price of potatoes soared 65% when compared with last year.
The Russian Central Bank raised interest rates (Image: Getty)
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The newspaper cited a survey in which half of Russians lamented the noticeable rise in dairy product prices. A sociologist placed the blame on the Russian Central Bank, not President Putin.
They said: “While failing to achieve its goals of lowering inflation, the Russian Central Bank is at the same time undermining people’s financial standing, making housing and consumer goods less affordable.
“All of this has a negative effect on Russians’ social well-being.”
Another newspaper, Moskovsky Komsomolets, highlights that the price of tangerines, a Christmas favourite in , has risen from 60-90 Roubles a kilo a year ago to between 100-150 Roubles today.
The paper added that the price of tangerines may rise as much as 50%.
The Rouble has slumped against the Dollar (Image: Getty)
Another news story says: “Russians are having to get used to the US dollar being worth more than 100 Roubles.”
Moskovsky Komsomolets reports that some experts believe the inflation won’t be noticed by Russians, but others say there will be “negative consequences.”
One report warns: “Western goods becoming more expensive, especially before the New Year holiday.
“The weaker the rouble, the stronger the dollar, the higher the inflationary expectations, and the higher rise in prices.”
Newspaper Izvestia also reports that Chinese banks are tightening checks on payments from the United Arab Emirates, India and Hong Kong amid fears Beijing could be hit with secondary sanctions.
EU sanctions have caused China, the United Arab Emirates, and Turkey to restrict transactions involving Russian-linked money, the report added.
Last month, ‘s Central Bank raised to a record 21% to try and prevent inflation. The Central Bank’s top banker, Elvira Nabiullina, admitted the country’s economy is at a turning point on Thursday.
She added: “We believe that our policy will reduce inflation to 4.5 to 5% next year, and then stabilize it near 4%.
“As it slows down, we will consider a gradual reduction in the key rate. If there are no additional external shocks, the reduction will begin next year.”