Inflation in Russia has hit a zenith of around 17 per cent, the economy minister said Thursday, as the economic crisis roiling the country takes its toll.”The peak in inflation has not passed but we have reached the highest point and will probably stay at this level for some time,” minister Alexei Ulyukayev was reported as saying by Russian news agencies.

“I think that for quite a long time, a month and a half or two months it will be at around 17 per cent,” he said.

Inflation has shot up in Russia as the ruble national currency plummeted in value on the back of Western sanctions over Moscow’s role in the Ukraine crisis and falling international oil prices.

The steep rise in prices has slashed spending power of households across the nation and Russia is expected to plunge into recession this year.

Despite the surge in inflation, Russia’s central bank cut interest rates this month for the second time since the start of the year as officials downplayed fears of further price hikes in a bid to breathe life into the moribund economy.

“It’s true the interest rate is still quite high,” President Vladimir Putin said at a meeting with top business figures, adding that the conditions were not yet in place to lower it further.

Russia has not yet created “fundamental conditions that would allow us to feel confident, and targeted support is extremely important,” he said, quoted by Russian news agencies.

With the ruble strengthening in recent weeks, Ulyukayev estimated that inflation would drop from its current high to less than 10 per cent by the end of the year.

“From now until the end of 2015 or start of 2016 there is a strong probability that inflation will go back down to a level of less than 10 per cent,” he said.

That means that Moscow could further cut back on its interest rate — currently at 14 per cent — after hiking it dramatically at the end of last year to stave off panic over the collapsing currency.

Finance Minister Anton Siluanov has meanwhile given the slightly less rosy prediction that inflation would subside to between 11 and 12 per cent.

Russia’s statistics agency Rosstat reported Thursday that real wages were down 9.9 per cent in February from the same month last year.

Meanwhile the unemployment rate jumped by 0.3 points from January to hit 5.8 per cent in February. Some 243,000 people were added to the unemployment rolls.

The government forecasts the economy will contract by three per cent this year after expanding by 0.6 per cent in 2014.

Authorities in Moscow have scrambled frantically to plug the economic gaps, slashing budgets and channelling money towards faltering banks, but critics say the Kremlin does not have a clear plan to salvage the situation.

22 Comments on "Russian Inflation hits 17 per cent"

Plantagenet on Thu, 19th Mar 2015 7:12 pm 



I’m not surprised that the economy is contracting and inflation is spiking in Russia.

The US and EU sanctions on Russia to punish them for invading Ukraine are serious enough, but combined with the collapse in oil prices due to the oil glut, it means Russia is in deep do do.

Makati1 on Thu, 19th Mar 2015 7:55 pm 



According to Shadow Stats, US inflation has bounced between 8% and 10% for the last 6 years, adding ~40% to the cost of necessities. The Russians are talking of months, not years, at 17%.

http://www.shadowstats.com/alternate_data/inflation-charts

Necessities are what count, not the price of i-toys or government ‘adjustments’.

“In the United States, unadjusted Consumer Price Index for All Urban Consumers is based on the prices of a market basket of: food (14 percent of total weight), energy (9.3 percent), commodities less food and energy commodities (19.4 percent) and services less energy services (57.3 percent). The last category is divided by: shelter (32.1 percent), medical care services (5.8 percent) and transportation services (5.5 percent). This page provides – United States Inflation Rate – actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for – United States Inflation Rate – was last refreshed on Friday, March 20, 2015.”

http://www.zerohedge.com/news/2014-03-26/real-inflation-fear-us-food-prices-are-19-2014

http://www.tradingeconomics.com/united-states/inflation-cpi

Inflation here in the Ps has averaged less than 4% over the last 7 years that I have been here.

“In Philippines, the most important categories in the Consumer Price Index are: food and non-alcoholic beverages (39 percent of total weight); housing, water, electricity, gas and other fuels (22 percent) and transport (8 percent). The index also includes health (3 percent), education (3 percent), clothing and footwear (3 percent), communication (2 percent) and recreation and culture (2 percent). Alcoholic beverages, tobacco, furnishing, household equipment, restaurants and other goods and services account for the remaining 15 percent.”

http://www.tradingeconomics.com/philippines/inflation-cpi

YOU know how inflation is affecting you and yours. Who cares what lies governments print? Soon grandma will not even be able to afford cat food.

Makati1 on Thu, 19th Mar 2015 8:01 pm 



BTW: “Authorities in Moscow have scrambled frantically to plug the economic gaps, slashing budgets and channelling money towards faltering banks, but critics say the Kremlin does not have a clear plan to salvage the situation.”

…could read:

“Authorities in Washington have scrambled frantically to plug the economic gaps, slashing budgets and channelling money towards faltering banks, but critics say the Fed does not have a clear plan to salvage the situation.”

Am I wrong? When you point a finger, three are pointing right back at you.

Plantagenet on Thu, 19th Mar 2015 11:07 pm 



Mak—this thread is about Moscow, not DC.

You make a valid point, but nonetheless the story du jour shows that the Russian economy is in a world of hurt.

Makati1 on Fri, 20th Mar 2015 6:10 am 



Plantagenet, it is in better shape than most Western countries. Low debt, high natural resources, land, and the backing of the Chinese. Things the West can only dream of.

Davy on Fri, 20th Mar 2015 6:32 am 



Makster can’t critique his super hero’s Planter that is against his propagandist ideology. He used negative US shadow stats above to try to balance this Russian article but only using MSM Russian stats. That folks is a typical Makster technic of selective use of facts per his personal anti-American message. That is false and a lie but a good one couched in an effective agnedist platform.

Makster compare apples to apples not oranges. If you are going to use shadow stats then admit things are much worse in Russia too. If there were Russian shadow stats then you could reasonably make comparisons instead you use the same propaganda technics to preach your agenda by selective comparisons. Your message is a lie of selective facts to support a super hero alternative to the US. You are as bad as the iron curtain propagandist your rail against.

JuanP on Fri, 20th Mar 2015 10:00 am 



This will be a hard year for Russians, but they’ve seen much, much worse. As Eisenhower once noted “When we flew into Russia, in 1945, I did not see a house standing between the western borders of the country and the area around Moscow. Through this overrun region, Marshal Zhukov told me, so many numbers of women, children and old men had been killed that the Russian Government would never be able to estimate the total.”
http://www.eisenhowerinstitute.org/about/living_history/wwii_soviet_experience.dot

The USA starting a war against Russia is forcing them to do the things they needed to do, but always procrastinated. Russia is more self sufficient, independent, free, sovereign, energized, and united with every passing day. I expect Russia to fare better than most of the world in the future, unless the USA-Russia War goes full nuclear, which is possible and becoming increasingly likely everyday this confrontation continues.

A little recession means nothing to the Russians, they’ve seen much worse.

Northwest Resident on Fri, 20th Mar 2015 10:41 am 



“The USA starting a war against Russia is forcing them to do the things they needed to do, but always procrastinated.”

Exactly!

And forcing Europe to reconsider its security arrangements/guarantees from America too, along with economic and trade ties. Weaning Europe off of American support and security guarantees was never going to be easy, but it had to be done, and the whole staged Ukraine/Russian/American conflict is pushing Russia and Europe away from America, and closer together, exactly where they need to be.

You’d almost think they had it planned that way all along… Or, I would.

Davy on Fri, 20th Mar 2015 11:31 am 



Juan, all countries have been corrupted by BAU the Russians are no exception. Their generation that fought in WWII are long gone. The country is in social decline and is a mafia state top to bottom. Corruption of a society top to bottom is no compliment and points to decay at every level. The US is likewise in cultural, political, and economic decline with decay at every level. For that matter global BAU is on her last leg. No, Russia is nothing special and will not rise to the occasion any more than many other nation, sorry. All nations’ cultural fiber has been compromised.

GregT on Fri, 20th Mar 2015 12:04 pm 



The DC thugs are desperately trying to maintain USD global hegemony, and continue to pursue their NWO. Financial and economic terrorism are not working, the last resort is war. The US is losing the support of the Europeans, and if she keeps pushing for her war, that war will be fought this time in North America.
Russia is no stranger to hard times and she has seen war before. The Russian people know how to work together for the benefit of all, strong family ties and societal cooperation are normal. Russia has oil, gas, and abundant natural resources. She did not blow her wad already on mass consumption and unchecked capitalism. Russian culture is thousands of years old, we in the west don’t have culture, we don’t even understand what the word means.

Tough times are coming for all, but we in the west do not have the experience dealing with tough times like the Russian people do. Russia will be fine. We will not be.

Northwest Resident on Fri, 20th Mar 2015 12:12 pm 



Beg your pardon, GregT, but we DO have a fast food culture in the West. And a culture of conspicuous consumption. Who says we don’t have “culture” in the West!!

GregT on Fri, 20th Mar 2015 12:16 pm 



You forgot the gang culture NWR, and the gun culture. Violence, corruption, consumption, and discrimination. We have so much to lose.

Northwest Resident on Fri, 20th Mar 2015 12:27 pm 



Minor oversight… 🙂

And the drug culture. Alcoholics and legal prescription pain killer addicts not included.

Davy on Fri, 20th Mar 2015 1:16 pm 



I wonder how we fit drug abuse, alcoholism and declining population into the picture of a great and rising Russia. I know let’s ask Mak. Mak knows how to put lipstick on a pig.

Makati1 on Fri, 20th Mar 2015 6:56 pm 



GregT, you are correct, of course as is JuanP. Russia will survive quite well, if it doesn’t go nuclear.

Estimates for WW2 losses in Russia range from 20 to 30 million people or ~20% of their population. The US lost about 420,000 or 1/3%. Even the little Philippines lost ~5% or ~800,000 people. The US likes to keep wars on other shores, but this time…

Makati1 on Fri, 20th Mar 2015 7:00 pm 



Can you imagine the UFSA losing 20% of it’s population in the next world war? That would be 64 million sheeple. How about 50% or more, if it goes nuclear (70:30 at this point)? The living would envy the dead.

Davy on Fri, 20th Mar 2015 7:04 pm 



Wow, it is a Friday night anti-American orgy circle jerk. You guys need some anger management along with something to chill the mood imbalances.

Makati1 on Fri, 20th Mar 2015 10:46 pm 



Does reality scare you Davy? ^_^

Davy on Sat, 21st Mar 2015 5:54 am 



^_^, nope Makster, just fine, and you in your cheap 1 room 10th floor apartment in the heart of overshoot of 12MIL people called Manilla? That is a reality I would not want to be apart of.

steve on Sat, 21st Mar 2015 11:03 am 



I like comments like this “Tough times are coming for all, but we in the west do not have the experience dealing with tough times like the Russian people do. Russia will be fine. We will not be.”

Show your ignorance of history!…there was a great depression and civil war in the states not too long ago…..

GregT on Sat, 21st Mar 2015 1:35 pm 



@steve,

It is you that is showing not only an ignorance of history long past, but an ignorance of recent history.

I reiterate; We in the west do not have the experience dealing with tough times like the Russian people do.

I never said anything about our great grand parents. I was referring to those of us that are alive today.

Kenz300 on Sat, 21st Mar 2015 3:12 pm 



Yet Putin has an approval rate of over 80%….

Go figure……..

Invade another country and it will go to 100% I guess……….