Weekly inflation in Russia almost doubled

MOSCOW, May 4 (Reuters) – Consumer prices in Russia nearly doubled last week, according to data from the state statistics office.

Inflation in the Russian Federation from April 25 to May 2, 2023 amounted to 0.19% against 0.10% a week earlier.

Since the beginning of May inflation has been 0.05% and since the beginning of the year consumer prices have increased by 2.18% according to the statistical service.

Over the five months of last year, prices increased by 11.80%. In Russia, inflation hit double digits shortly after Moscow launched what it calls a “special military operation” in Ukraine on February 24, 2022, prompting massive Western sanctions.

Among groceries, over the last week the prices of mutton increased the most – by 2.1%, granulated sugar – by 0.9%, and poultry meat – by 0.8%. At the same time, fruit and vegetable prices fell by an average of 0.8% after an increase of 0.8% a week earlier.

Among non-grocery items, the prices of smartphones increased the most – by 2.6% and Russian cars – by 1.3%.

The average cost of vouchers for holiday homes and boarding houses increased by 1.9%, and for sanatoriums – by 0.8%. The cost of flying in an economy class cabin increased by 0.2%.

Last week, the Bank of Russia once again kept its key rate at 7.50% p.a., but warned that it may need to be raised at subsequent meetings if the regulator sees signs of accelerating inflation, jeopardizing reaching the 4% target in 2024 r.

The Bank of Russia estimates inflation in 2023 in the range of 4.5-6.5% after an 11.9% increase in prices last year. (Daria Korsunskaya. Editor Dmitry Antonov)