INSUBCONTINENT EXCLUSIVE:
The pace of inflation in Russia accelerated yet again in May as officials warn huge public spending to support the military offensive on
Ukraine is overheating the economy.Increases in government expenditure have supported Russia's economy in the face of a barrage of Western
sanctions but also triggered surging prices and labor shortages in many sectors not connected to the campaign.Inflation was running at 8.3%
Bank to further raise interest rates to bring inflation under control.Last week it held its key interest rate at 16% but signaled it could
hike borrowing costs in the future if the pace of price rises does not slow down.German Gref, the CEO of state-run Sberbank, warned last
week that Russia's growth was "fragile" as it relied on government spending to keep pushing wages and consumer spending up, and not on
investment or gains in productivity.
