Consumer inflation in Russia accelerated in April to 17.83% in year-on-year terms, its highest level since January 2002, data showed on Friday, as it got a boost from the volatile rouble and unprecedented western sanctions that disrupted logistics chains.
But monthly inflation slowed to 1.56% in April from 7.61% in March when it staged the biggest month-on-month increase since January 1999, data from the federal statistics service Rosstat showed.
The fall in the rouble to record lows in March boosted demand for a wide range of goods from food staples to cars on expectations that prices will rise even more. The rouble has recovered since and firmed to a near five-year high against the euro on Friday.
High inflation has been the key concern among households for years as it dents living standards, a fall which this year will be aggravated by a steep economic contraction.
The central bank targets inflation at 4% but expects it to reach 18-23% this year. But it has already cut its key rate to 14% after an emergency rate hike to 20% in late February and said it saw room for more monetary easing to help the economy.
Rosstat gave the following details:
RUSSIAN CPI April 22 March 22 April 21 Mth/mth pct change +1.56% +7.61 +0.58% – food +2.87% +6.73 +0.75% – non-food +0.53% +11.25 +0.66% – services +1.07% +3.99 +0.22% Y/Y pct change +17.83% +16.69 +5.53% Core CPI y/y pct change +20.37% +18.69 +5.47%
(Reporting by Reuters)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)