Although month-on-month inflation in Russia had fallen sharply in April, it had risen year-on-year. The rate of consumer price inflation in Russia is the highest since January 2002. This is due to the volatile development of the ruble.
Compared to March, prices are up slightly
The annual inflation rate in Russia climbed to 17.83 percent in April. Compared to March, prices rose by only 1.56 percent, when a month earlier the month-on-month rate of price growth was 7.61 percent. This is according to the latest data from the Russian Statistical Office.
Ruble volatility due to the war in Ukraine
The immediate cause can be seen as the significant volatility of the ruble, which began to weaken against the euro and the dollar shortly after the Russian invasion of Ukraine. While on the eve of the invasion of Ukraine by Russian troops the dollar was trading around 78 rubles, its value began to fall significantly in the following days to more than 140 rubles per dollar. However, the ruble has been strengthening in recent days, but it is impossible to say exactly to what extent this is the result of market forces or the intervention of the Russian central bank.
Russian statisticians expect full-year inflation to rise to 18-23 percent this year. However, the Russian central bank has already cut its key interest rate from 20 to 14 percent.