DISINFO: Inflation in Russia is between 2.5 and 3%
SUMMARY
The quality of life in the Russian capital has surprised this politician and businessman.
The journalist was amazed at the availability of all Western products, the absence of shortages in commodities, and the fact that inflation was between 2.5 and 3%.
RESPONSE
Recurring pro-Kremlin disinformation narrative about Western sanctions on Russia. The claims about Russia’s economic success contradict factual evidence.
First, inflation in Russia has been consistently much higher than the figures stated in the article. Last year, after Russia's unprovoked and unjustified full-scale invasion of Ukraine, inflation rates soared to 20%. It only went down to about 3.5% after the base effect of last year's inflation took hold.
In addition to inflation, it follows from the analysis by the World Bank, the International Monetary Fund (IMF) and the Organisation for Economic Cooperation and Development (OECD) that in 2022, Russia’s gross domestic product (GDP) dropped by at least 2.2% in the best-case scenario and by up to 3.9% in the worst-case scenario.
A study from Yale University takes a detailed look into the effects sanctions are having on the Russian economy, concluding that "business retreats and sanctions are catastrophically crippling the Russian economy."
Read an earlier detailed analysis of the Russian disinformation narratives about EU sanctions.