As an election nears, Vladimir Putin now looks to have inflation under control
, Russia’s economy has repeatedly defied the doomsayers. A financial collapse, widely predicted in the spring of 2022, never came to pass. The economy fell into recession, but it was less severe than expected and did not last long. Inflation was the. Last year prices accelerated rapidly; economists believed they could spiral out of control. Even Mr Putin was worried. In February he urged officials to give “special consideration” to rising prices.
Who deserves credit for the turnaround? The finance ministry is advancing its claim. Last year its officials successfully lobbied for exchange-rate controls, which compel exporters to deposit foreign currency in the Russian financial system. The wheeze has probably supported the rouble, which has appreciated in recent months, reducing the price of imports.
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