# Russian inflation accelerates to 7.61% m/m in March, highest since 1999
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-08
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Russian Consumer Prices Soar 7.61% in March
Meta Description: Consumer prices in Russia soared 7.61% in March, as the economy reels from sanctions and a record fall in the rouble. Inflation spiked as demand increased
URL: https://financedigest.com/russian-inflation-accelerates-to-7-61-m-m-in-march-highest-since-1999html

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(Reuters) – Consumer prices in Russia jumped 7.61% in March, their biggest month-on-month increase since January 1999, data showed on Friday, as the economy took a hit from sanctions and a record fall in the rouble.

Inflation in Russia has accelerated sharply in the past few weeks as the rouble slipped to an all-time low last month after Russia began what it calls “a special military operation” in Ukraine on Feb. 24.

The fall in the rouble, which has recovered sharply this week to 2022 highs, boosted demand for a wide range of goods from food staples to [cars on expectations that prices will rise](https://www.financedigest.com/uk-new-car-sales-rise-17-in-march-best-ever-month-for-evs.html "UK new car sales rise 17% in March; best ever month for EVs") even more.

In March, sugar [prices jumped](https://www.financedigest.com/stocks-jump-as-treasury-yields-ease-and-oil-prices-sell-off.html "Stocks jump as Treasury yields ease and oil prices sell off") 44% compared with February, while prices for onions and washing machines rose 50% and 46%, respectively, the statistics service said on Friday.

In year-on-year terms, Russia’s [consumer price](https://www.financedigest.com/ikea-reports-record-sales-as-price-hikes-offset-weakening-consumer-confidence.html "IKEA reports record sales as price hikes offset weakening consumer confidence") index (CPI) rose 16.69% in March after rising 9.15% in February, Rosstat said.

The year-on-year increase in the CPI was slightly below analysts’ [expectations for a rise of 16.9% in a Reuters poll and below Russia’s key interest rate](https://www.financedigest.com/ecbs-makhlouf-expects-50-bps-rate-hike-in-december.html "ECB’s Makhlouf expects 50 bps rate hike in December"), which the central bank unexpectedly cut on Friday to 17% from 20%.

High [inflation has been the key concern](https://www.financedigest.com/shares-rise-but-concern-mounts-over-inflation-flare-up.html "Shares rise, but concern mounts over inflation flare-up") among households for years as it dents living standards, a fall which this year will be aggravated by the deepest economic contraction since 2009, a Reuters poll of analysts suggested.

This year, [annual inflation](https://www.financedigest.com/average-annual-uk-food-bill-set-to-rise-454-pounds-as-inflation-soars.html "Average annual UK food bill set to rise 454 pounds as inflation soars") is on track to spike to 24%, its highest since 1999, according to analysts polled by Reuters. Russia [targets annual inflation](https://www.financedigest.com/the-mouse-that-roared-new-zealand-and-the-worlds-2-inflation-target.html "The mouse that roared: New Zealand and the world’s 2% inflation target") at 4%.

Rosstat gave the following details:

RUSSIAN CPI March 22 Feb 22 March 21

Mth/mth pct change +7.61 +1.17 +0.66

– food +6.73 +1.56 +0.82

– non-food +11.25 +0.78 +0.72

– services +3.99 +1.13 +0.37

Y/Y pct change +16.69 +9.15 +5.79

Core CPI y/y pct change +18.69 +9.74 +5.38

[(Reporting by Reuters; Editing by Hugh Lawson)](https://www.financedigest.com/thomson-reuters-report-reveals-risk-compliance-staff-expect-to-see-significant-benefits-from-artificial-intelligence-ai-and-distributed-ledger-technologies.html "Thomson Reuters Report Reveals Risk & Compliance Staff Expect to See Significant Benefits from Artificial Intelligence (AI) and Distributed Ledger Technologies")


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