© Reuters. FILE PHOTO: A Russian state flag flies over the Central Bank headquarters in Moscow, Russia March 29, 2021. A sign reads: “Bank of Russia”. REUTERS/Maxim Shemetov
(Reuters) – Consumer inflation in Russia will keep on accelerating in annual terms due to base effects, the central bank said on Wednesday, warning that rouble volatility will continue, leading to upside inflationary pressure.
In month-on-month terms, consumer prices in Russia jumped 7.61% in March, their biggest such increase since January 1999, as the economy took a hit from sanctions and a record fall in the rouble.
Year on year, inflation accelerated to 16.69% in March from 9.15% in February, and officials say it can reach 20% this year.
The central bank said its policy will help bring inflation to the 4% target in 2024.
Last week, the central bank unexpectedly cut its key interest rate to 17% from 20% and said future cuts were possible, as emergency steps had contained the risk to financial stability, brought deposits back to banks and helped limit the threat of inflation.
Russian cenbank warns consumer inflation will accelerate further