Russia inflation hits 17.83% in April

Russia inflation hits 17.83% in April

Consumer inflation in Russia accelerated in April to 17.83% in year-on-year terms, its highest level since January 2002, as it was boosted by the volatile rouble and unprecedented western sanctions that disrupted logistics chains.

In April, monthly inflation slowed to 1.56% from 7.61% in March, when it staged the biggest month-on-month increase since January 1999, according to data from the federal statistics service Rosstat.

Russia started what it calls a special military operation in Ukraine on February 24th, and the inflation in Russia has increased sharply after Russia began what it calls a special military operation in Ukraine.

The falling in the rouble to record lows in March boosted demand for a wide range of goods from food staples to cars on expectations that prices will rise even more. The rouble has recovered and was close to a five-year high against the euro on Friday.

High inflation has been a main concern for households for years as it dents living standards, a fall that will be exacerbated by a steep economic contraction this year.

The central bank expects inflation to reach 18 -- 23% this year, but the central bank wants to keep it at 4%. After an emergency rate hike to 20% in late February, it has cut its key rate to 14% and said it saw room for more monetary easing to help the economy.