Published by Global Banking and Finance Review
Posted on September 15, 2025
1 min readLast updated: January 21, 2026
Putin acknowledges effective inflation control in Russia but urges focus on boosting economic growth. Inflation dropped to 8.1% in August, with a cautious central bank rate cut.
MOSCOW (Reuters) -Russian President Vladimir Putin told a government meeting on Monday that measures to reduce inflation were working, but questioned whether more needed to be done to boost growth.
Recent data showed that inflation fell to 8.1% in August from 8.8% in July. On September 12, the central bank cut its key rate by one percentage point instead of an expected two percentage points, saying that inflation remained high.
"Efforts to reduce inflation are yielding results. It is very important that the moderate price environment has a positive effect on business investment activity and enables more dynamic, sustainable growth," Putin said.
Putin questioned whether more needed to be done to boost economic growth, which slowed to 1.1% in the first half of this year from 4.3% in the whole of 2024.
"The question is, is that enough? Is this what we wanted? Are we managing to solve the task we set for ourselves?" Putin asked.
"Or do we need other measures and higher growth rates, naturally while ensuring macroeconomic and inflationary stability given the central bank’s prudent policy?"
(Writing by by Gleb Bryanski. Editing by Mark Trevelyan and Mark Potter)
Putin stated that efforts to reduce inflation are yielding results, highlighting a positive impact on business investment activity.
Recent data indicated that inflation fell to 8.1% in August from 8.8% in July.
Economic growth slowed to 1.1% in the first half of this year, down from 4.3% in the whole of 2024.
Putin questioned whether the current growth rate is sufficient and if additional measures are needed to achieve higher growth while ensuring macroeconomic stability.
On September 12, the central bank cut its key rate by one percentage point, which was less than the expected two percentage points.
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