23:20 - 20.07.2026

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July 20, Fineko/abc.az. A near-stagflationary environment is taking shape in Russia, where elevated interest rates are showing limited effectiveness in curbing inflation, according to a recent report by the Center for Macroeconomic Analysis and Short-Term Forecasting (CMACP).

Analysts highlighted two primary structural drivers: a substantial portion of consumer costs—including fuel prices and utility tariffs—remains outside the influence of central bank monetary policy, while businesses increasingly pass rising costs, including higher debt servicing expenses, onto end consumers.

The situation is further compounded by high corporate debt burdens and limited market competition, which enable companies to preserve profit margins. Consequently, continued monetary tightening is slowing overall economic activity without delivering a tangible reduction in inflationary pressure.