Inflation Jumps in Russia

russia inflation as of april 2021 1

Inflation has jumped to 5.8% in Russia for March, doubling from just 3% in May last year. Food and vegetable prices have risen by as much as 12% over last year, with the Russian Ruble (RUB) also falling from 72 to the dollar last month to now 77. This has led the central bank there to increase rates to 4.5% from 4.25%, but it is finding some political resistance with the Economic Development Minister Maxim Reshetnikov stating according to a rough translation: “We understand that [it is impossible] to fight inflation, which is non-monetary in nature, with only one rate, because we talk a lot about the fact that this inflation by and large is imported from the world food markets… But if we go following this path, the price will be a reduction in investment lending in the economy.” In China producer prices have also risen 4.4% year-over-year, the…

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