Russia plans one-off payments to military to offset inflation

Russian President Vladimir Putin has said his government will make lump-sum payments to retirees and military personnel this year to help them cope with a stronger-than-expected spike in inflation, the RIA news agency reported on Sunday.

Rising food prices are a sensitive issue for the Kremlin ahead of the parliamentary elections in September, reports Reuters.

Putin told leaders of the ruling United Russia party that the planned increase in government payments would no longer be enough to cover the current 6.5 per cent year-on-year inflation, beating the expected 4.0 per cent level, it said RIA report.

"Of course we have to increase the incomes of some civic groups," he said.

Military personnel will receive payments of 15,000 rubles (202) each and pensioners of 10,000 rubles, Putin said at the meeting.