May 18, 2022

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Russian inflation accelerates to 12.5%, highest since 2015

Annual inflation in Russia accelerated to 12.54% as of March 11, its highest since late 2015 and up from 10.42% per week earlier, the financial system ministry stated on Wednesday, with weakening rouble sending costs hovering amid unprecedented Western sanctions.

Inflation accelerated sharply because the forex fell to an all-time low and amid indicators of elevated demand for a variety of products, from meals staples to vehicles, on expectations that their costs will rise additional. Weekly inflation slowed barely to 2.09% within the week to March 11 from 2.22% per week earlier, which was the sharpest one-week enhance in costs for the reason that 1998 disaster, knowledge from statistics service Rosstat confirmed.

Costs of practically every thing from child meals to prescription drugs rose sharply final week, with sugar and tomato costs rising by greater than 12%, Rosstat knowledge confirmed. The central financial institution, which targets annual inflation at 4%, raised its key fee to twenty% in late February.

“Tight financial situations facilitate inflation slowdown however, in our view, they will not reserve it from hovering above 20% this yr,” Raiffeisen Financial institution analysts stated. The central financial institution will subsequent meet on charges on Friday and is anticipated to maintain the price of lending unchanged.

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