Russias yearly inflation rate leapt above 10% in February to its greatest level in 2 years, despite aggressive rate of interest walkings by the Central Bank, official data showed Wednesday.Prices have been rising quick throughout the Russian economy for months, driven by surging federal government costs on the war in Ukraine.Annual inflation ticked up to 10.1% year-on-year last month, compared with 9.9% in January, according to the Rosstat statistics service.This marks the highest level considering that February 2023.
Russias Central Bankhiked its crucial rate to a historical high of 21% in 2015 in an effort to suppress inflation, making borrowing more costly for consumers.However, economic experts alert that rate walkings have a limited impact when inflation is sustained by state spending.Since launching its invasion in Ukraine, Russia has ramped up military spending to levels not seen given that the Soviet period, funding massive rocket and drone production and paying high wages to numerous thousands of frontline soldiers.Last month, the Central Bank greatly raised its inflation projection for 2025, cautioning there were no signs of a downturn.
Inflation is now expected to average in between 7% and 8% this year, up from an earlier forecast of 4.5% to 5% for 2025.