by Tim Lister
CTV News
Americans have spent the last few years complaining about inflation. But price rises in Russia are eye-watering by comparison – and just one symptom of an economy that is overheating.
Butter, some meats, and onions are about 25 per cent more expensive than a year ago, according to official data. Some supermarkets have taken to keeping butter in locked cabinets: Russian social media has shown stocks being stolen.
The overall inflation rate is just shy of 10 per cent, much higher than the central bank anticipated.
Inflation is being driven by the rapid rise in wages as the Kremlin pours billions into military industries and sends millions of men to fight in Ukraine. In the middle of a war, companies outside the defence sector can’t compete for workers without paying much higher wages. In turn, they charge higher prices. So the spiral continues.