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30 May 2023

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Russia inflation hits 20 years high in April

BI Report || BusinessInsider

Published: 11:18, 14 May 2022   Update: 11:47, 14 May 2022
Russia inflation hits 20 years high in April

Picture: Collected

Russia's annual inflation jumped to a two-decade high of 17.8 percent in April, fuelled by Western sanctions over Moscow's military campaign in Ukraine, statistics agency said on Friday.

Since President Vladimir Putin moved troops into Ukraine on February 24, Russia has been hit with international sanctions, including embargoes on key exports, accelerating already high inflation.

Inflation of food prices, a huge concern for Russians on low incomes, has reached 20.5 percent year on year, according to Rosstat.

Pasta has gone up by 29.6 percent, butter by 26.1 percent, and fruit and vegetables by 33 percent.

Annual inflation could reach 23 percent this year before slowing down next year and returning to the target of 4 percent in 2024, according to the Central Bank, reports Business Recorder. 

"Looking ahead, we expect monthly increases in prices to ease further from May," Capital Economics said.

Inflation has been speeding up for months due to a number of factors including the post-pandemic recovery and high prices for raw materials. Putin's decision to send troops to Ukraine has added sanctions and the resulting logistical difficulties as factors.

Putin on Thursday said Western countries were worse hit by sanctions imposed on Moscow over Ukraine than Russia, which he insists has been resilient in the face of "external challenges".

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