Russia inflation slows in May: statistics agency

• Annual inflation falls to 17.1 percent in May, down from 17.8 percent in April.
• Food price inflation increased to 21.5 percent year on year in May.
• Russia has been hit with a barrage of international sanctions.

Russia inflation fell to 17.1 percent in May, down from 17.8 percent in April, according to the national statistics agency on Wednesday.

Nonetheless, food price inflation, a major issue for Russians on low incomes, increased to 21.5 percent year on year in May from 20.5 percent in April, according to Rosstat.

Sugar prices have gone up by 61.4 percent, pasta by 29.2 percent, and fruit and vegetables by 26.3 percent, the data showed.

Since President Vladimir Putin moved troops into Ukraine on February 24, Russia has been hit with a barrage of international sanctions, including embargoes on key exports, fuelling already high inflation.

Read More: Russia inflation hits 20 year high in April

Annual inflation could reach 23 percent this year before slowing down next year and returning to the target of four percent in 2024, the Central Bank has said.

Putin last month said that inflation would not exceed 15 percent for the year as a whole.

The price hikes have considerably undermined the purchasing power of everyday Russians who have little savings.

Retail sales fell by 9.7 percent in April year-on-year, data showed.

Following an emergency meeting in late May, the central bank slashed its main interest rate, as authorities moved to cool a soaring ruble.

On Friday, the central bank will hold its next rate-setting meeting.

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