Russia's Inflation Tango: Balancing Guns and Butter

Russia faces surging inflation challenges as the price of butter and other commodities rise, driven by defense spending amidst ongoing conflict. Authorities struggle to keep prices stable, even as butter thefts increase and international imports ramp up. The central bank raises interest rates as part of economic measures.

President Vladimir Putin claims Russia's war economy can handle the supply of both 'guns and butter'; however, inflation is causing the cost of butter to soar, with a 25.7% rise since December, according to state statistics.

Reuters reporters noted that a pack of "Brest-Litovsk" butter in Moscow increased by 34% since January, causing consumer alarm reminiscent of last year's egg price crisis. Economists warn that these trends may continue.

The increased butter costs have sparked thefts in supermarkets. Authorities are closely monitoring the situation, as Deputy Prime Minister Dmitry Patrushev announces stepped-up imports from Belarus, Turkey, and even Iran and India.

(With inputs from agencies.)