Putin is facing a growing economic crisis (Image: Russia)
Russia’s real inflation rate has surged by more than 700% since came to power, according to a new analysis.
Officially, inflation is hovering at around the 9.5% mark, with the Kremlin desperate to avoid a further increase.
‘s Central Bank has raised to a record 21% in a bid to bring inflation down.
A further hike in the key rate has not been ruled out by bank officials, with analysts predicting a further 1% rise in the first quarter of 2025.
Russians have seen an explosion in food prices (Image: Getty)
However, ordinary Russians are experiencing price inflation that outstrips the official rate many times over.
Hard pressed have seen an explosion in prices for basic food items, leaving them painfully out of pocket.
by more than 70% in the last year, while butter has risen by around 30% – leading to a spate of thefts from grocery stores.
These figures, though, are just the tip of the iceberg when it comes to the real rate of Russian inflation.
An analysis carried out by economic experts for the Rossiskaya Gazeta shows that prices for a wide range of goods and services have increased by 700% (8-fold) since 2001.
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The analysis was carried out using data from the Kremlin’s own statistics agency Rosstat.
It shows that the average rate of inflation per year for the first quarter of the C21st was 9.1%.
By way of comparison, the UK’s inflation rate per year between 1984 and 2024 averaged just 2.82%.
Cigarettes in have seen the biggest price inflation in those 24 years.
If in 2001 one pack cost about 7 roubles (£0.06), now it costs 192 roubles (£1.56) – a difference of 27 times.
Housing prices have skyrocketed 16-fold, from 9,000 to 148,000 roubles per square metre, while eggs have gone up from 19 roubles to 117 roubles in the same period.
Unfortunately for Russians, wage growth did not keep up with inflation, lagging far behind.
Adjusted for inflation, in real terms the growth of salaries since 2000 was only 4.7% per year.