Vladimir Putin has hinted at his desperation for inflation in Russia to decrease. On June 20, the Russian President said that he hoped that the rate would decrease to 7% this year, after The Central Bank of Russia forecasted between seven and 8%. During his plenary address at the St. Petersburg International Economic Forum (SPIEF 2025), Putin said: “The Central Bank and government are making necessary efforts [to reduce inflation].”

Russia’s annual inflation slowed to 9.6% as of June 16, he added, according to Russian news service Interfax. “The Central Bank estimates 7%-8% for the year, but I believe and hope it will be 7%,” the President said. It comes as the central bank says it still considers its inflation target to be 4%. Officials also noted that the target should be such that Russian citizens and businesses do not attach significant importance to the ongoing price increases, reports suggest.

This policy has been has been repeatedly criticised, as those against it repeatedly call on officials to pursue economic growth.

“We believe that 4% is the maximum level that citizens and businesses can perceive as low inflation. Inflation of 6% per year is already noticeable to the naked eye.

“Especially considering that the higher the average inflation rate, the greater the amplitude of fluctuations around it in both directions, and the spread of price growth for individual goods is also greater,” the Bank of Russia said on its Telegram channel.

The head of the Russian Ministry of Economic Development Maxim Reshetnikov has asked the bank to show “a little love” for the economy.

“We all seem to understand here that reducing inflation is important,” he said. “But it seems to me that we are simplifying the discussion – either we have 4% inflation, or everything is like in Turkey.

“It seems to me that between these poles there is still some decision-making zone that we can discuss.”

The minister added: “I am simply in favour of the fact that, in addition to faith in 4%, there can be at least a little love for the economy, just a little bit.”

The CEO of Russian bank VTB Andrey Kostin also called for not making a cult out of the inflation target, Interfax wrote.

He said: “I don’t want to offend anyone, but in my opinion… I’ve always said that inflation of 40% is bad, of course, but inflation within 10%, I think, is just beautiful.”