Russia's September inflation was higher than the previous month and almost three times the April figure.
Figures released by the Russian Statistics Agency (Rosstat) on October 11 showed that the country's consumer price index (CPI) rose 6% in September. This rate increased compared to 5.5% in August and 2.3% in April. The Central Bank of Russia's target is 4%.
Compared to the previous month, Russia's CPI in September increased by 0.87%. This is the strongest increase since April 2022.
This comes amid a recent weakening of the ruble. Over the past few months, the currency has repeatedly breached the 100-to-1-dollar mark. On the Moscow exchange yesterday, the exchange rate was 100 rubles to the dollar and 106.5 rubles to the euro.
Imported goods from China in a supermarket in Vladivostok (Russia). Photo: Reuters
A slide in the ruble, booming military spending and persistent labor shortages have all contributed to rising prices in recent months. Russia experienced a bout of high inflation last year, after Western sanctions were imposed over the war in Ukraine. But prices have since cooled.
To tackle the ruble's devaluation and high inflation, the Russian Central Bank raised its key interest rate from 8.5% to 12% in August. Last month, it raised it again to 13%.
The Russian government announced in September that it would temporarily limit gasoline and diesel exports to “stabilize” the domestic market and lower prices for consumers. Russia has seen soaring fuel prices and shortages in many regions over the past few months.
Also in September, Governor Elvira Nabiullina warned that Russia's economic growth would slow in the second half of the year. They are also discussing a number of measures to support the currency.
Russian President Vladimir Putin, however, downplayed the current economic challenges, insisting that the economy “remains stable.” Last month, during a meeting on the draft federal budget for 2024-2025, he declared that the Russian economy had recovered after enduring unprecedented pressure from the West.
Ha Thu (according to Reuters, AFP)
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