Russians struggle with ‘crazy’ prices

Russia’s Central Bank last week cut interest rates from a two-decade high, saying inflation was starting to come under control although for many hard-pressed Russians, it does not feel that way. (AFP)
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Updated 11 June 2025
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Russians struggle with ‘crazy’ prices

  • Russia’s three-year-long military offensive on Ukraine has caused inflation to surge at home
  • Western sanctions have disrupted supply chains and dozens of consumer brands have left the country

MOSCOW: Russian pensioner Roman Paltievich stared at the prices for apricots, tomatoes and watermelons stacked high on stalls at a Moscow market – foods that he now struggles to fit into his budget.

“The prices are crazy,” lamented the 84-year-old, who said he can no longer afford cherries – or even potatoes, a staple that is now three times more expensive than a year ago.

Russia’s three-year-long military offensive on Ukraine has caused inflation to surge at home, a thorn in the side for the Kremlin, which strives to shield Russians from the fallout of its campaign.

Western sanctions have disrupted supply chains and dozens of consumer brands have left the country, while inflation is now running above 10 percent.

Meanwhile, deep labor shortages caused by massive recruitment by the army and arms manufacturers, have seen both salaries and prices jump higher.

Russia’s Central Bank last week cut interest rates from a two-decade high, saying inflation – including food prices – was starting to come under control.

But for many hard-pressed Russians, it does not feel that way.

Paltievich’s wife, Tatyana, stood next to him clutching a small punnet of strawberries – a precious treat for her grandchildren that set her back 400 rubles ($5).

“We survived 1991, so now we’re not afraid of anything,” she said defiantly, in reference to the collapse of the Soviet Union and the economic chaos that followed.

Many of those navigating the aisles at Moscow’s Preobrazhensky market were also worried about high prices.

“I came here to buy chicken for my granddaughter. It’s more expensive in the supermarkets, so I don’t buy there anymore,” Nikolai Kucherov, a 62-year-old freelance artist said.

“I had to forget about traveling. For the past three or four years, I’ve only been thinking about filling up the fridge,” he said.

The Kremlin has hailed Russia’s economic performance since it ordered its troops into Ukraine in February 2022.

A huge surge in spending on the military has helped Moscow defy predictions that sanctions would collapse the Russian economy.

Engineer Konstantin Zelenkov, 38, is one of those who have benefited from rising wages amid the government spending boom.

“Some things are becoming more expensive but salaries are rising too, so it’s staying roughly the same,” he said.

Central bank chief Elvira Nabiullina has also pointed to rising wages and on Friday said inflation was starting to moderate, though it remains well above the institution’s four percent target.

“The high interest rate has led to a significant slowdown in inflation,” she told reporters.

Overall “the rate of increase in food prices has slowed,” she added.

But even Russian President Vladimir Putin was forced recently to address fears over a potato shortage that sent prices for the staple soaring.

For many across Russia, price rises feel never-ending.

“Starting even with bread, everything is getting more and more expensive,” Irina Yakovleva, 68, said.

“We just have to limit ourselves,” she added.


Indonesia sets rules limiting use of AI for schoolchildren

Updated 4 sec ago
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Indonesia sets rules limiting use of AI for schoolchildren

  • Indonesian children spend about 7.5 hours daily on tablets, smartphones
  • Gen Zs make up the majority of AI users in the country of 280m people

JAKARTA: The Indonesian government introduced on Thursday a new policy regulating the use of digital technology in education, limiting access to artificial intelligence for students.

Generation Alphas and Gen Zs make up almost half of Indonesia’s online population, which reached nearly 230 million people in 2025, according to a survey conducted by the Association of Indonesian Internet Service Providers.

As Indonesian children clock around 7.5 hours of daily screen time, the joint ministerial decree seeks to boost the benefits of digital technology and AI in formal and informal educational institutions, while also protecting the youth from risks in digital spaces.

“There are a lot of factors but the number of teenagers with mental health issues are high and continue to increase, and one of the suspected triggers — that have been proven academically — is the uncontrolled, unmitigated use of digital technology,” said Pratikno, Indonesia’s Coordinating Minister for Human Development and Cultural Affairs.

“The effects on education are also concerning, such as how it weakens brain activity due to dependence on digital technology tools and reduces critical thinking and cognitive and reflective abilities. This is what we have to regulate.”

Among Indonesia’s 280 million population, around a quarter of internet users are already using AI, with Gen Zs making up about 43 percent of that segment.

The joint decree, which Pratikno described as “comprehensive” and encompasses early childhood education to higher education, was signed in Jakarta by seven ministers, including Higher Education, Science and Technology Minister Brian Yuliarto and Primary and Secondary Education Minister Abdul Mu’ti.

“This decree seeks to ensure that our children are not controlled by technology but become the masters of technology for good, that is our goal. (It prioritizes) digital wellness, (for tech to be used) wisely and intelligently,” Pratikno said.

The policy is important to support young Indonesians, many of whom are internet users from adolescence, said Communication and Digital Affairs Minister Meutya Hafid, who also signed the ministerial decree.

“Indonesia has a significant number of children using the internet. Therefore, we must ensure that they are not only a target market for the technology industry, but also able to utilize technology according to their readiness,” she said.

“Every kind of technological advance has to consider the readiness of its users, especially children.”