This is how inflation often has to be tackled. Central bank policy rate has to be close to or above the inflation rate and they would need to be quick about raising rates to stop high inflation expectations from being embedded in the population's psyche. Here, Russia's central bank raised rates from 7.5% in July 2023 to 15% today to address inflation which has risen from 4% to 6%.

This is no magic bullet but a sharp rise in the policy rate is usually the bare minimum required to tackle inflation.

Russia's central bank has put up its key interest rate to 15% to try to curb inflation and bolster a weak rouble.1

The higher-than-expected rate hike of two percentage points raises borrowing costs for the fourth time in a row.

Globally the pace of price rises has been high, in part due to Russia's invasion of Ukraine. Inflation in Russia hit 6% in September.

There has also been increased government spending in Russia as it pours resources into its war machine.

The Bank of Russia, the country's central bank, has now raised rates by 7.5 percentage points since July as it seeks to get inflation back down to its 4% target.

https://www.bbc.com/news/business-67233075.amp