Inflation is the economic phenomenon characterized by a general increase in prices of goods and services over a period of time, which leads to a decrease in the purchasing power of money. It signifies that, on average, the cost of living rises, making consumers pay more for the same quantity of goods and services. Inflation is typically measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI). Various factors can contribute to inflation, including demand-pull inflation (when demand for goods and services exceeds supply), cost-push inflation (when production costs increase, leading to higher prices), and built-in inflation (when businesses and workers expect inflation to continue and adjust their prices and wages accordingly). Central banks often monitor inflation closely, as it can influence monetary policy decisions, including interest rates. High levels of inflation can have negative impacts on an economy, such as eroding savings, creating uncertainty, and leading to decreased consumer confidence. Conversely, low or moderate inflation is often considered a sign of a growing economy.
Levitating above analysts’ expectations, Russia's economy experienced significant growth of 5.4% in the first three months of 2024, according to the official statistics released on Friday. This comes as President…