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Russia inflation hits 20 year high in April

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Annual inflation in Russia reached a two-decade high of 17.8 percent in April, fueled by Western sanctions over Moscow’s military campaign in Ukraine, according to the statistics agency on Friday.

Since President Vladimir Putin sent troops into Ukraine on February 24, Russia has faced a barrage of international sanctions, including embargoes on key exports, which has accelerated already high inflation.

According to Rosstat, food price inflation, a major concern for Russians on low incomes, has reached 20.5 percent year on year.

Pasta has gone up by 29.6 percent, butter by 26.1 percent, and fruit and vegetables by 33 percent.

Annual inflation could reach 23 percent this year before slowing down next year and returning to the target of 4 percent in 2024, according to the Central Bank.

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“Looking ahead, we expect monthly increases in prices to ease further from May,” Capital Economics said.

For months, inflation has been accelerating due to a variety of factors, including the post-pandemic recovery and high raw material prices. Putin’s decision to send troops to Ukraine has increased the likelihood of sanctions and the resulting logistical difficulties.

Putin said on Thursday that sanctions imposed on Moscow over Ukraine had hurt Western countries more than Russia, which he claims has remained resilient in the face of “external challenges.”

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