Inflation in Russia May Reach 14% in 2022 – Central Bank Head

    Inflation in Russia may reach as high as 14% in 2022, according to the latest estimate from the Central Bank Head. Fuel prices have been soaring since the conflict in Ukraine. However, the country is able to withstand unprecedented pressure. The ruble has recovered to levels last seen in early February, and the country’s current account surplus has surpassed $58 billion in the first quarter of this year. In addition, foreign cash is returning to the banking system, and the consumer market has stabilized after a period of panic buying. Retail chains are restocking supplies and the consumer market has stabilised after a short period of panic buying.

    Meanwhile, the UK’s inflation has soared to 9% in April 2022, the highest level in 40 years. Rising energy costs and conflict in Ukraine have put pressure on consumer prices, and this will only add to the cost-of-living crisis faced by millions of UK households. Inflation is the biggest economic risk in the world today, and the Central Bank is taking steps to tackle the problem.

    The Bank of England is expected to keep the bank rate at 0.75% this month. However, there are signs that inflation is likely to climb even higher. Inflation in Turkey hit 61% in March 2022, a record high for the country. In the UK, energy prices will also rise in the summer of 2022, with typical household energy bills of PS2,500 by autumn.

    Inflation in Ukraine Could Reach 25 Percent in 2020

    Inflation in the UK was 7.9% in February, and this doesn’t include the impact of the ongoing conflict in Ukraine. The Bank’s target for inflation is 2%. Inflation in the UK is currently standing at 5.5%. Nonetheless, economists believe the Bank of England will raise the rate by 0.25 percentage points, taking the rate to 0.75%. Many lenders, however, have already priced this into their current offers.

    The road to sustained economic growth in Russia remains challenging, and the monetary and fiscal consolidation needed to rebuild the economy is not easy. Moreover, the global economy is experiencing monetary policy tightening, which means higher interest rates and pressure on emerging market currencies. However, the outlook for Russia is more positive than many experts believe. The recovery should be gradual, and the pace of growth should remain moderate. Inflation in Russia will likely ease as global stocks are rebalanced and supply chains are reestablished.

    In Russia, the inflation rate may hit 14% in 2022, as many analysts believe. This is primarily due to a recent increase in domestic energy prices. Fuel and food prices have also accelerated in recent months, with prices expected to reach 7% this spring and a further 4% in 2022. This inflation rate is over three percentage points higher than the Bank of England’s target rate. The UK’s inflation rate may even hit 8% by mid-year, but it is expected to moderate thereafter.

    The latest report on inflation in the US indicates that the country will reach its 2% inflation target in the first half of 2022. The US Federal Reserve and the Bank of England have both raised interest rates this year, and a further rise next week will bring the Eurozone’s monetary policy in line with their own. But if the Fed is unable to meet its inflation target in the second half of this year, this may be the trigger to raise rates further.


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