The Kremlin has acknowledged ongoing inflation concerns in Russia, with annual rates exceeding 9%, and announced a significant increase in the central bank's key interest rate to 18% to combat economic pressures. Spokesman Dmitry Peskov emphasized that while every economy faces challenges, Russia's growth indicators remain positive, citing strong GDP growth driven by defense spending amid sanctions related to the Ukraine conflict. However, rising prices for essentials and a labor shortage due to the war are contributing to persistent inflation. Experts warn that with military spending rising and labor issues unresolved, inflation may continue to plague the economy, complicating the war effort. The Russian government is reportedly implementing measures to address these inflationary pressures, though the effectiveness remains uncertain.