Russia Inflation March 2021

Russia: Inflation hits highest level since November 2016 in March

Consumer prices rose 0.66% in March over the previous month, a smaller increase than February’s 0.78% rise. March’s result marked the softest rise in prices since October 2020. Inflation came in at 5.8% in March, up from February’s 5.7%. March’s result was the highest inflation rate since November 2016. Meanwhile, the trend pointed up, with annual average inflation coming in at 4.2% in March (February: 3.9%). Core inflation rose to 5.4% from the previous month’s 5.0%.

Commenting on the outlook, Dmitry Dolgin, chief Russia economist at ING, said:

“Even though Russian inflation has probably peaked in March and is likely to decelerate to 5.5% YoY in April, we expect it to remain above 5% until November, and see upward risks to our year-end 4.2% target. The risk factors include elevated ruble volatility, delayed effects of administrative price controls in socially-sensitive items, secondary effects of gasoline price growth, and potential increase in the budget spending plan this year ahead of the September Parliamentary elections. We believe that at the upcoming central bank meeting on 23 April, which will take place after the Presidential Address on 21 April, will remain focused on the pro-inflationary risks and will be deciding between a 25bp and 50bp key rate hike.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest