Fri, 22 Sep 2023

Russian consumer prices fall for third consecutive week

Robert Besser
25 Jun 2022, 17:48 GMT+10

MOSCOW, Russia: Russia's consumer price index has fallen by 0.12 percent for the third consecutive week.

This drop in the consumer price index gave the Russian central bank more room to reduce rates and limit this year's economic downturn.

Meanwhile, data from the federal statistics service Rosstat reports that consumer prices in Russia increased by 11.51 percent this year.

Due to the rouble's rapid recovery and a drop in consumer demand, annual inflation has slowed recently and, in weekly terms, the consumer price index declined 0.14 percent from one week earlier.

After weekly inflation peaked at 2.22 percent in early March following the start of Russia's invasion of Ukraine on 24th February, Russia recorded a weekly drop in inflation for the first time since August 2021.

Amidst uncertainty related to external risks, such as the Western embargo on Russian oil, inflation has been slowing, even after the central bank cut its key interest rate earlier in June to the pre-crisis level of 9.5 percent, keeping the door open to further easing.

Due to logistical disruptions and increased volatility in the rouble, prices of almost all items, from vegetables and sugar to clothing and smartphones, have risen sharply in Russia since the start of the Ukraine invasion.

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