Vladimir Putin apologized for Russia’s inflation problem this week, making a rare admission of the nation’s precarious economic situation since it first began its invasion of Ukraine last year.
The Russian president conducted an annual end of year question and answer session with members of the Russian media and the public, with one pensioner, Irina Akopova, questioning the president about the soaring prices of eggs and chicken, per Reuters.
Egg prices have soared 40% since the start of the year, according to Russian data agency Rosstat. That’s partly due to a shortage of key goods in the country, due to western trade restrictions imposed on Russia since it first began its “special military operation.”
“I apologize for this, but this is a failure of the government’s work,” Putin said at the event, according to Reuters’ report.
He added that production hasn’t increased in the country, despite higher demand for goods. “I promise that the situation will be corrected in the near future,” he said.
Russia is planning slash duties on 1.2 billion eggs imported in the first half of 2024 in attempt to lower costs for consumers. Still, inflation overall in Russia is roaring, with prices in the economy rising 7.4% year-over-year in November, according to Rosstat data.
Inflation could end up rising higher to 8% this year, Putin added at the event. That’s double the Central Bank of Russia’s inflation target, which aims for prices to grow 4% annually.
The steep rise in prices in Russia is just one sign of trouble for the country’s economy, which has struggled amid rising military costs and western sanctions on the country. Economists are warning of a bleak future ahead for Russia, though Putin has claimed the nation is headed for a new growth phase.
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