Russia: Inflation comes in at highest level since January 2002 in April
Consumer prices increased 1.56% over the previous month in April, below March’s 7.61% increase. The moderation was broad-based, with lower price pressures recorded for food products, non-food products, and services.
Inflation rose to 17.8% in April from March’s 16.7%. April’s reading represented the highest inflation rate since January 2002. Annual average inflation rose to 9.3% in April (March: 8.2%). Finally, core inflation rose to 20.4% in April, from the previous month’s 18.7%.
Price pressures are expected to peak in the coming months, with inflation seen gradually easing towards the end of the year. That said, inflation will likely remain elevated this year and next, amid pressures stemming from supply chain disruptions and restrained imports, and as the Central Bank seemingly shows willingness to support economic activity growth at the expense of temporarily higher inflation.