Russian inflation continues to pick up steam

Consumer prices showed in July-August their fastest on-month rise for years. In August consumer price inflation was nearly 16 % y-o-y and food prices were up over 18 %.

Following a price spike late last autumn and winter, food prices fell slightly in the summer in line with normal seasonal fluctuations. However, the rise in prices of non-food goods accelerated in July-August in a manner similar to (but milder than) what happened last winter and spring. An underlying factor was a sharp drop and increased volatility in the ruble exchange rate. Prices of services also rose faster than in many years, mostly due to unusually large rate hikes in July for household energy and water supply.

Consumer price inflation

Source: Rosstat