Russia’s inflation surges to 14.53%, the highest level in more than six years


Russia’s annual inflation rate reached 14.53% as of March 18, rising from 12.54% a week ago as the country’s economy and currency struggle with severe sanctions imposed by the West due to Moscow’s invasion of Ukraine. did. This is the highest annual inflation rate since November 2015.

Inflation for the week up to March 18 was 1.93%, slightly lower than last week’s 2.09%, according to data from the National Bureau of Statistics Rossstat. The year-to-date rise in inflation was 7.67%.

Inflation surged following the invasion of Ukraine, and the ruble fell to a record low in early March. Since then, the currency has recovered to some extent, but future uncertainty remains a concern. From staple foods to automobiles, demand for commodities is skyrocketing and prices are expected to rise further soon.

The cost of sugar used to make sake and store food has risen by an average of 14 percent. In some areas, sugar prices have skyrocketed by up to 37.1 percent.

“People share tips on where to get sugar. This is crazy,” said a Russian citizen. Parents.. “That’s sad and funny. It feels like it was okay a month ago, but now we’re talking about the 1990s and buying a product because … maybe the product is gone. I’m worried. “The person had to wait an hour and a half to procure a 5 kg bag of sugar.

Onion prices were the second highest in the week, rising 13.7% nationwide and up to 40.4% in certain regions. Tea prices rose 4%, diapers rose 4.4%, and toilet paper rose 3%.

Some products like tampons are missing. As the value of the ruble has fallen, the prices of imported products such as toothpaste, clothing and tide detergent have skyrocketed.

“Import inflation is the number one cause,” said Stephen Innes, managing partner of SPI Asset Management. BBC.. “Because of the weak ruble, everything Russia imports is exponential (more expensive).” The Russian government claims that there is enough supply to meet the demand for basic commodities and speculates. He is blaming the house and panicking to buy up to raise prices.

The Central Bank of Russia maintained its key interest rate at 20% in March. Banks have warned of an imminent surge in inflation and expect it to slow to its target of 4% per annum by 2024.

Talk to Limited express The newspaper, former BBC Moscow correspondent Kevin Connolly, predicted that Russia would see “rapid inflation.” And the store sees a further shortage of merchandise.

“There was already a shortage of goods from the European Union due to the exchange of sanctions after the invasion of the Crimean Peninsula.” Russia has tried to strengthen economic sanctions in recent years, but the strictness of western sanctions remains. He added that it is affecting the country.

Naveen Athrappully

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Naveen Athrappully is a news reporter on business and global events in The Epoch Times.