“The Russian economy, which as recently as the end of last year was showing annual growth of 4.5%, faces not just a slowdown, but a likely recession. The latest official data suggests the economy could dip into negative growth as early as this summer”, Mr Kolyandr wrote.
Last month, Putin hinted at his desperation for inflation in Russia to decrease. On June 20, the Russian President said that he hoped that the rate would decrease to 7% this year, after The Central Bank of Russia forecasted between seven and 8%. At the International Economic Forum (SPIEF 2025), Putin said: “The Central Bank and government are making necessary efforts [to reduce inflation].”
Russia’s annual inflation slowed to 9.6% as of June 16, he added, according to Russian news service Interfax. “The Central Bank estimates 7%-8% for the year, but I believe and hope it will be 7%,” the President said.
It comes as the central bank says it still considers its inflation target to be 4%. Officials also noted that the target should be such that Russian citizens and businesses do not attach significant importance to the ongoing price increases, reports suggest.
