Putin is worried that the rise in prices could harm the standard of living as he prepares to promise the country's residents as part of the election campaign for a new 6-year presidential term.

Meanwhile, Russia's budget is under pressure from what Putin calls a "special military operation" in Ukraine, and the central bank was forced to raise interest rates last week to stem the ruble's slide.

"The volume and complexity of the tasks we are solving and continue to solve are of a truly extraordinary nature," Putin said in televised remarks to government officials.

He added that the general situation is stable, but it requires vigilant monitoring and timely decision making.

After inflation of more than 10% in 2022, the pace of price increases slowed in the spring, but inflation is now above the 4% target set by the central bank and is still rising.

An expanding budget deficit and a severe shortage of personnel added to the inflationary pressures throughout the year. And when the value of the ruble reached over 100 against the dollar last week, the central bank was forced to intervene by raising the interest rate by 350 basis points, to 12%.

The high military cost of the invasion of Ukraine has led to a modest economic recovery for Russia this year with increased industrial production, but it has already pushed the budget into a deficit of about $29 billion, a figure exacerbated by lower export earnings.

Putin said the budget is expected to achieve a surplus in the third quarter of this year, but no one believes him.