Russian inflation tops 16pc

Russia's inflation rate reached 16.7 per cent year-on-year in March, the state statistics agency said Friday, a level not seen since 2015, while food prices have risen even more steeply.

Prices in March --- the first full month since Moscow began its military campaign in Ukraine in late February -- were up 7.5 per cent on the previous month, according to Rosstat statistics agency. The Russian central bank sets a target for inflation of four percent, but as the economy has been hit by unprecedented Western sanctions, the latest year-on-year figure is more than four times higher.

Renaissance Capital analysts predict that inflation will peak at 24 per cent this summer.

Inflation of food prices, a huge concern for Russians on low incomes, has reached 19.5 per cent year-on-year, according to Rosstat.

Pasta has gone up by 25 per cent, butter by 22 per cent, sugar by 70 per cent and fruit and vegetables by 35 per cent.

Other items that have soared in price are building materials (up 32 per cent) and home electronics (up 40 per cent).

Inflation has been speeding up for months due to factors including the post-pandemic recovery and high prices for raw materials. President Vladimir Putin's decision to send troops to Ukraine has added sanctions and the resulting logistical difficulties as factors.