The graph above shows levels of inflation in Russia based on the consumer price index (CPI). It shows the change in process of a standard package of goods and services purchased in Russian households for consumption.

After a deep drop in inflation from the 1990s, the 21st century so far has seen a more stable inflation rate in Russia.

Russian inflation, steadily brought down to an annual 10 per cent in 2006, was running at 13.7 per cent in the first quarter of 2009. A double-digit inflation rate in 2008 constrained the government from reviving the declining economy, caused by the global credit crunch and a declining currency affected inflation control manoeuvrability.

The Russian central bank could not control the inflation rate by lowering rediscount rates in order to make commercial bank borrowing easier, unlike the US Federal Reserve. It continued to fight a high annual inflation rate of 13 per cent in March, 2009, with a rediscount rate of 13 per cent.

Vladimir Putin promised to curb inflation levels in 2008, the year he was sworn in as president. He seems to have kept his promise – inflation as measured by the consumer price index (CPI) has dropped from 14 in January 2008 to 7 in late 2009.