Russia's inflation rate may approach 18% by the end of 2022, remaining above previous years average given the latest data, Anton Struchenevsky, chief economist at SberCIB Investment Research, a subsidiary of Sberbank, said on Wednesday
MOSCOW (Pakistan Point News / Sputnik - 11th May, 2022) Russia's inflation rate may approach 18% by the end of 2022, remaining above previous years average given the latest data, Anton Struchenevsky, chief economist at SberCIB Investment Research, a subsidiary of Sberbank, said on Wednesday.
"Inflation is likely to remain above the average 'normal' level of previous years. The SberCIB inflation rate forecast for 2022 is 20%, but given the latest data, inflation is now more likely to be slightly below 20% and reach around 18%," Struchenevsky said.
The economist noted that the increase in consumer prices in the week ending on April 29 slowed to 0.21%, compared with 0.25% a week earlier. Struchenevsky added that April inflation was about 1.5%. According to the expert, although the rate of price growth was significantly lower than 7.6% in March, prices were much higher year-on-year, with the annual inflation rate jumping to about 17.8% from 16.7% in March.
The economist also said that prices on some non-food items, including consumer electronics, building materials, diesel fuel and medicines, continued to decline, while fruit and vegetable costs increased by 0.6%.
"This may indicate that the lower inflation trend related to the strengthening of the ruble and the drop in consumer demand is decreasing. However, the decline in the weekly inflation may continue in the coming weeks due to seasonal factors and a certain recovery of imports," Struchenevsky said.
On February 24, Russia launched a military operation in Ukraine after the breakaway republics of Donetsk and Luhansk appealed for help in defending themselves against Ukrainian forces. The West responded by imposing comprehensive sanctions against Moscow, which resulted in the rising inflation rate and the increase in consumer prices not only in Russia, but also in many other countries.
