Economics
Price Surge Pits Bank of Russia Against Old Inflation Fears
- Russians have little confidence price hikes can be controlled
- Central bank raising rates sharply as price growth above goal
The Russian Central bank in Moscow.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
The Bank of Russia spent years convincing citizens that it could bring inflation under control. A few months of surging prices has been enough to demolish that progress.
“There was a short period when inflation fell out of the top three problems worrying the population,” said Valery Fedorov, head of state-run pollster VTsIOM. “People didn’t have time to believe in it.”