Annual inflation in Russia accelerated to 9.15% in February from 8.73% in January, its highest in seven years, official statistics showed, with prices soaring further on a weakening rouble amid Western sanctions imposed over the Russian invasion of Ukraine.
According to the Rosstat data released on Wednesday, prices on nearly everything from bread to gasoline have spiked, with cost of sugar and cereals such as buckwheat – top products that Russians stockpile – showing some of the biggest increases of 20.6% and 18%, respectively, reports Reuters.
Yet the biggest cost rise was in construction materials such as wallpaper and bathroom tiles, with prices spiking by 22.5%, indicating an increased demand to finish renovation projects amid booming costs for imported goods as the rouble was falling.
Annual consumer inflation reached 10.42% as of March 4, the economy ministry said separately on Wednesday, up from 9.05% as of Feb. 25. Weekly inflation rose to 2.22% from 0.45% in the preceding week.
The Russian central bank raised its key interest rate to 20% from 9.5% in an emergency move last week, introduced capital controls and told its export-focused companies to sell foreign currency as the rouble tumbled to record lows. read more
On Wednesday, the Russian parliament said it was ready to introduce proposals to regulate prices for food, medicines and other goods, with the government separately ordering the prioritisation of grain sales to domestic bakers in order to secure bread for Russians.
