Russia's Economy Faces Stagflation and Rising Costs Amid Crisis

A Kremlin-linked think tank warns that Russia is at risk of stagflation, where high inflation and economic stagnation occur simultaneously. Despite high interest rates aimed at curbing inflation, the Russian economy is facing a downturn, with businesses suffering from reduced profitability and potential bankruptcies. The central bank's tight monetary policy has not significantly lowered inflation, which remains high, particularly in food prices. The economy contracted by 3.1% year-over-year, and further interest rate hikes are expected as inflation persists.