Russia's annual inflation rate under Putin's leadership has dropped to 8.8%
In a meeting held on August 12, 2021, President Vladimir Putin gathered key economic officials to discuss the current state and future prospects of the domestic Russian economy.
Despite a slight increase in registered unemployment, Russia's unemployment rate remains at record low levels, with a rate of 2.2%. This is an encouraging sign, as it indicates a strong labour market.
According to Central Bank surveys, the share of enterprises facing labor shortages is decreasing, which further supports the notion of a robust economy.
The government is preparing the federal budget for the next three years, from 2026 to 2028. This long-term budget planning is based on a forecast of socio-economic development, the current and future situation in the real sector, and the situation on global markets.
Inflation, which was 10.3% in March, has been reduced to 8.8% by July. President Putin announced that the Bank of Russia estimates suggest that inflation dynamics could end the year within 6-7%, below previous forecasts. This is a significant achievement in controlling inflation.
To further support economic growth, the Bank of Russia has reduced the key rate to 18% per annum. This move is aimed at stimulating economic activity while maintaining price stability.
However, the number of people in hidden unemployment (those on temporary leave, working part-time, or at risk of dismissal) has increased from around 98,000 at the beginning of the year to 199,000 by August 8. This trend underscores the need for continued efforts to support employment and economic growth.
President Putin stated that a joint task for the Government and the Bank of Russia is to return the Russian economy to a path of balanced growth. This goal encompasses efforts to control inflation, stimulate economic activity, and ensure sustainable growth.
In the discussion, Putin reported signs of a reduction in labor shortages in the labor market, which is a positive step towards achieving this goal. The meeting provided an opportunity for economic officials to share insights and strategize on how to further improve the Russian economy.
While specific details about the meeting are not widely available, it is clear that the discussion focused on key economic issues such as economic growth, labor market conditions, inflation control, and budget planning. The Bank of Russia's role in monetary policy, such as interest rate adjustments and inflation targeting, would have been instrumental in these discussions.
For a more comprehensive understanding of the August 12, 2021 meeting, official Kremlin communications, economic reports from that time, or credible news coverage would need to be consulted.
The Bank of Russia's interest rate reduction aims to stimulate economic activity in the business sector, contributing to President Putin's goal of a balanced growth for the Russian economy. With signs of reducing labor shortages in the finance sector, the meeting of key economic officials offers a potential solution to the increasing hidden unemployment, as they strategize for further economic improvement.
