Inflation in Russia down to 13% in October, from 18% in April

By Al Mayadeen English
Source: Agencies
1 Nov 2022 15:55

Despite the sanctions, inflation rates in Russia have cooled down significantly since April.

Russia's Central Bank.

Inflation is down from 18% in April 2022, reaching 13% in October despite the escalating sanctions and pressures, according to Mikhail Mishtusin, Russia's Prime Minister.

"Russia continues to face mounting pressure. More than 12,000 unilateral restrictive measures have been adopted against our country. They affect key financial institutions, technology, oil and gas, mining, transport, and other economic sectors," Mishustin told a meeting of the Shanghai Cooperation Organization.

The Prime Minister stated that Russia managed to overcome the worst, and also managed to set conditions that function to stabilize economic dynamics, sustain public finances and allow for the eventual recovery of consumer demand and investment activity.

"By the end of October, inflation in Russia amounted to 13% against about 18% in April of this year," Mishustin specified.

The Russian Central Bank predicted that the country's inflation rate in 2022 would be between 12-13%.

In August, the Central Bank of Russia stated that the economic adjustment process could take up only 1.5 years.

In the draft Monetary Policy, the bank said “the Bank of Russia assumes that the restrictions imposed will remain as forecast. The process of economic adjustment to these may take up to 1.5 years".

When the economy reaches a new equilibrium, economic activity will begin to recover, as per the bank.

The bank believes that the Russian economy will face unprecedented Western sanctions as a result of Moscow's war in Ukraine.

It also forecasted a 4-6% decline in GDP in 2022 and a 1-4% decline in 2023. Inflation, according to the forecast, will fall to 5-7% in 2023 and close to 4% in 2024.

Since the beginning of the war on February 24, 2022, the US and the EU have multiplied punitive measures to isolate Russia by targeting its banking system, and freezing the assets of its leaders, and its industries.