The consumer price index, a key measure of inflation, rose to 17.83% in April on an annual basis in Russia, according to data released by state authorities, as fluctuations in the value of the ruble and unprecedented Western sanctions severely disrupted supply chains.
This is the highest rate of price increase since the beginning of 2002.
On a monthly basis, however, compared to March, inflation increased by only 1.56%, compared to 7.61% recorded in March compared to February, an increase which was the highest since January 1999, as noted by Rosstat.
Inflation in Russia has skyrocketed since Moscow launched its “special military operation” on February 24 against Ukraine, which it calls a “special military operation.”
The March fall in the ruble had boosted demand for a wide range of goods, according to Reuters, from basic foodstuffs to cars, as there were fears that prices would rise further. The ruble has since recovered and is almost at a five-year high against the euro today.
High inflation is a major source of concern for households, especially as the country’s economy shrinks sharply this year.
Russia’s central bank targets inflation of 4%, but its forecasts for this year “see” the index between 18% and 23%.
The Bank’s key interest rate has fallen to 14%, following an initial one-off increase to 20% in late February, and Russian central bankers have said they are likely to further ease monetary policy to help the economy.
Source: Capital
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