Feb 17 (Reuters) – Russia’s central financial institution mentioned on Friday that inflationary pressures throughout the economic system had remained robust throughout the first two weeks of February, citing a stoop within the rouble as an element.
Russia recorded inflation of 11.8% on an annual foundation in January, virtually 3 times the central financial institution’s official 4% goal. It signalled final week it was getting ready to boost base rates of interest to chill inflation.
“Operational information for the primary two weeks of February point out the pattern in the direction of elevated value pressures continues,” the financial institution mentioned on Friday in a report.
Costs throughout Russia have been extraordinarily risky within the yr since Russia invaded Ukraine – with a interval of fast inflation following the imposition of Western sanctions adopted by months of deflation as capital controls pushed the rouble increased.
However falling revenues from essential oil and fuel gross sales have once more hit the Russian forex this yr. The rouble has fallen 16% for the reason that begin of December, when a European Union embargo and G7 value cap on Russian crude gross sales got here into pressure.
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“The alternate price has already affected (costs of) probably the most import-dependent merchandise in January, and if the rouble stays at its present stage, this may proceed to have a pro-inflationary impact within the coming months,” the financial institution’s analysts mentioned within the report.
Reporting by Jake Cordell; Modifying by Raissa Kasolowsky and John Stonestreet
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