Since the beginning of the war in Ukraine and after the numerous sanctions against Russia, the life of Russians has become more and more expensive. Inflation in the country hit nearly 18 percent year-on-year in April, according to Russia’s Federal Statistical Office. This means that prices have risen the fastest since the start of 2002.
Unlike in the Netherlands, for example, it is not mainly energy, food and fuel that become considerably more expensive, but more for consumer products in all areas. So-called core inflation, which does not include petrol and diesel, for example, rose even faster and amounted to more than 20%.
Month after month, the shock just isn’t as big as it was in March. In this first full month after Russia invaded Ukraine, the overall price level jumped nearly 8% from February. In April, prices then rose by just under 2% from the March level.
The Russian economy has been hit hard by numerous Western sanctions. Punitive measures and the choice of many Western companies to turn their backs on Russia have already led to far fewer imports and exports of goods to Russia. Russian households are also buying less and have started saving more in times of uncertainty.
Earlier this week, Russia’s central bank said it expected a contraction of between 8% and 10% for this year as a whole. Inflation should be between 18 and 23%. Last month, the International Monetary Fund (IMF) predicted that the Russian economy would contract by 8.5% this year.