Inflation is a real disaster for Russia, because it impoverishes the people: Elvira Nabiullina, head of the Russian central bank

The director of the Central Bank of Russia, Elvira NabiullinaHe affirmed this Monday that the record inflation registered is a “real disaster” for the country, urging the government to take measures in this regard.

Inflation in Russia has risen sharply for months, reaching 8.1% year-on-year in October, a record figure since 2016 that doubles the target set by the Central Bank.

As in most of the world, food prices have exploded, hitting the underfunded population hard.

“Inflation is a real disaster that impoverishes people“said the official addressing the lower house of the Russian Parliament (Duma).

Nabiullina, one of the few officials who circumstantially criticizes the government policy of President Vladimir Putin, said that “high inflation destroys prosperity.”

“Inflation should return to the target of 4% at any price,” he told the Duma.

The well-respected head of the Central Bank has been sounding the alarm for months about rising inflation, raising the guideline rate, currently 7.5%, on several occasions to try to curb the skyrocketing price increases.

He has also criticized the measures taken by the government to limit the prices of certain products at Putin’s own demand, and this Monday reiterated his position once again, considering that this measure is detrimental to the economy.

Under Nabiullina, the Central Bank of Russia had previously achieved stop rampant inflation, taking the country out of the economic crisis.

By sharply raising the guideline rate to 17% in 2014, the Central Bank successfully curbed inflation after Russia suffered a historic collapse of its currency, the ruble, due to falling oil prices, an important resource. economic situation of the country, and of the sanctions imposed by Western countries as a result of the annexation of the Ukrainian peninsula of Crimea.



Reference-www.eleconomista.com.mx

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