The main events of the past week according to the Russian economy is showing signs of stagflation due to a sharp slowdown in gross domestic product growth to zero point six percent while price pressures remain high. The current dynamics are confusing monetary authorities, as easing policy can accelerate inflation, and maintaining tighter conditions threatens to intensify the decline in business activity. As a result, the burden of high credit costs continues to fall on consumers and businesses at variable interest rates. The draft federal budget for the three-year period faced risks of systematic revenue shortfalls due to an expected drop in oil export prices and problems in income tax collection. If an unfavorable scenario occurs, the state will have to reconsider priorities and reduce funding for non-priority expenditure items. The situation worsens due to the simultaneous growth of the public debt and the costs of its direct service. The worsening labor shortage led to a drop in the unemployment rate to historic lows, with an increase in open vacancies that was not typical for the fall season. The lack of specialists forces employers to raise wages at a rate that exceeds productivity, which sets the stage for another inflationary spiral. The current situation increases the likelihood that the regulator will continue the tight monetary policy. The number of bankruptcies of companies in the country began to increase for the first time in nine years, and the total claims of creditors exceeded a trillion rubles. The non-payment crisis hit capital-intensive sectors the hardest, including the energy, housing and community services and construction sectors, which suffer from expensive loans. Additional pressure on businesses comes from reductions in government support programs and the tightening of the tax burden.