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Russian 2021 inflation accelerates to 8.39%, preliminary data shows

Russian 2021 inflation accelerates to 8.39%, preliminary data shows
Russian 2021 inflation accelerates to 8.39%, preliminary data shows   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p><span class="caps">MOSCOW</span> – Consumer inflation in Russia accelerated to 8.39% in 2021 despite seven interest rate hikes by the central bank, up from 4.91% in 2020, preliminary data from the statistics service Rosstat showed on Wednesday.</p> <p>Inflation, which is hovering near its highest levels since early 2016, has become an acute problem for Russia, denting living standards and prompting President Vladimir Putin to call for preemptive measures.</p> <p>The increase in the consumer price index in 2021 came above analysts’ expectations for a rise of 8.2% in a Reuters poll carried out in late December.</p> <p>The central bank, which targets inflation at 4%, had to revise its inflation forecasts higher during the year but kept saying that the pace of annual consumer price growth would near the target in 2022.</p> <p>The bank is expected to raise rates again, from 8.5%, in the first quarter of 2022, according to the Reuters monthly poll.</p> <p>In the week to Dec. 27, the consumer price index rose 0.26%, Rosstat said.</p> <p>Rosstat said it would publish the final inflation reading on Jan. 12. </p> <p>Rosstat gave the following details: </p> <p> <span class="caps">RUSSIAN</span> <span class="caps">CPI</span> Dec 21* Nov 21 Dec 20 </p> <p> Mth/mth pct change +0.82 +0.96 +0.83 </p> <p> – food +1.36 +1.27 +1.53 </p> <p> – non-food +0.64 +0.72 +0.40 </p> <p> – services +0.26 +0.81 +0.42 </p> <p> Y/Y pct change +8.39 +8.40 +4.91 </p> <p>*Preliminary data</p> <p/> </div>