Inflation in Russia is rising. Much higher than the central bank’s target

According to other data published by the Ministry of Economy, annual consumer inflation fell to 16.19 percent, while it was 16.22 percent a week ago.

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Reuters reports that in early March, after the implementation of the first sanctions against Russia in connection with its invasion of Ukraine, Weekly inflation was the highest in 20 years at 2.22 percent. After the Central Bank of Russia raised it At the end of February the key interest rate from 9.5 to 20 percent. And the introduction of strict controls on capital flows, contraction was recorded in Russia in June.

But The strengthening of the ruble exchange rate Politicians frightened that it could seriously damage the country’s economy, which relies heavily on exports, and the central bank cut interest rates from 20 to 9.5 per cent.

As Reuters comments, shortages of some goods, disruption of supply chains, suspension of Western companies in Russia and sanctions against Moscow could lead to the biggest collapse of the Russian economy since the mid-1990s.