Russian inflation hits 20-year high
Prices of almost everything from vegetables to sugar to clothes and smartphones in Russia have increased sharply in recent weeks, following the military campaign in Ukraine.
The Russian Ministry of Economy on April 20 announced that the country’s inflation for the week of April 9 – April 15 was 17.62% (adjusted for a year basis). This rate is the highest since the beginning of 2002 and higher than 17.48% the previous week, Reuters said.
Russian inflation accelerated as the ruble fluctuated due to Western sanctions, causing prices to rise. Prices of almost everything from vegetables to sugar to clothing and smartphones have risen sharply in recent weeks, after Russia launched a military operation in Ukraine on February 24.
However, data from the statistics agency Rosstat yesterday also showed that Russia’s weekly inflation has slowed. In the week to April 15, the rate was 0.2%, slower than 0.66% the week before. The main reason is the drop in prices of non-food items. Fuel prices continue to rise.
Since the beginning of the year, Russia’s consumer price index has increased by 11.05%. In the same period last year, this rate was 2.72%.
This will cause the central bank of Russia to consider lowering interest rates at its April 29 meeting. The Central Bank of Russia earlier said it could lower the key interest rate, currently at 17%, in upcoming meetings.
Inflation this year could be around 17% – 20%, said Alexei Kudrin, head of the Russian Audit Office last week. Analysts polled by Reuters in March forecast Russia’s average inflation this year at around 23.7% – the highest since 1999.
Ha Thu (according to TASS, Reuters)
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