It looks like another headache is facing Vladimir Putin as inflation in Russia has soared to 12.5%, the highest level in the country since 2015.
Annual inflation in Russia accelerated to 12.5% as of March 11, its highest level since the end of 2015 and against 10.4% a week earlier, the Ministry of Economy said on Wednesday, according to a report. from Reuters.
A weakening ruble drives prices higher amid unprecedented Western sanctions.
Inflation accelerated sharply as the currency fell to historic lows and amid signs of rising demand for a wide range of goods, from basic foodstuffs to cars, awaiting a further increase in their prices.
Weekly inflation slowed slightly to 2.09% in the week to March 11 from 2.2% the previous week, which was the largest one-week price increase since the 1998 crisis, according to data from the Rosstat statistics service, as reported by Reuters.
Prices for almost everything from baby food to pharmaceuticals rose sharply last week, with prices for sugar and tomatoes rising more than 12%, according to data from Rosstat.
Russia’s central bank will meet this Friday and is expected to keep the cost of lending unchanged.
The central bank, which aims for annual inflation of 4%, raised its key rate to 20% at the end of February.
“Tight monetary conditions make it easier to slow down inflation but, in our view, they will not prevent it from exceeding 20% this year,” analysts at Raiffeisen Bank said.