"The sanctions are having an effect, but they are not of key importance," Putin said when talking about the surging inflation and prices in Russia. The country's annual inflation rate rose 9.2-9.3% while the ruble oscillates around 100 to the U.S. dollar.Russia's central bank sought to curb inflation by instituting the highest interest rates – 21% – since the early 2000s.According to Putin, inflation is driven by the supply not keeping up with the demand and the rising prices of some products globally. Many experts also connected the development to increased defense spending as Russia invests record sums in its full-scale war against Ukraine. "Some experts believe that the central bank could have used tools unrelated to raising the key interest rate more effectively and earlier," Putin said.