The Producer Price Index (PPI) continued to rise in March to 26.7% from 23.5% in February. Producer prices in Russia are rising after several countries and companies boycotted Russia following the invasion of Ukraine. In addition, some countries have imposed sanctions on Russia, which is hurting the Russian economy.
Earlier, the Russian Ministry of Economy announced that the consumer price index (CPI) increased by 16.7% in March.
Prices in Russia for almost everything from food to clothing to smartphones have skyrocketed since Russia’s military invasion of Ukraine, due to the volatility of the ruble after the U.S. and the West imposed sanctions on Russia.
Investors are awaiting the Russian Central Bank’s monetary policy meeting on April 29, as the central bank indicated at its last meeting that it will cut interest rates at this month’s meeting from the current 17%. Inflation has been above the target of 4%.