Russia: inflation remains high at +15.10% in July over one year

Inflation, which soared in Russia to a 20-year high before falling back, remained at a high level in July at 15.10% year on year, according to data from the statistics agency Rosstat published on Wednesday.

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In June, inflation recorded in Russia was 15.09% over one year.

Food prices were once more the hardest hit by the acceleration in June, rising 17.7% year on year. They were driven in particular by basic products such as sugar (42.3%), pasta (+26.4%), butter (+25%) and bread (+18%).

Compared to the month of June, however, prices fell overall by 0.39%, and those of food by 1.73%.

Prices, already on the rise in Russia due to the post-pandemic recovery and soaring commodity prices, had flared up following the imposition of sanctions on Russia for the entry of its troops into Ukraine at the end of February, which caused major logistical disruptions.

In April of this year, inflation even broke a record since 2002, climbing to 17.8% over one year.

At the end of May, President Vladimir Putin assured that inflation would not exceed 15% by the end of 2022, while announcing an increase in pensions and social minima.

The rise in prices has already considerably undermined the purchasing power of Russians, who have little savings, and caused their consumption to melt by more than 10% in May over one year.

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