UPDATE 1-Russia's central bank says falling rouble driving inflation higher

(Adds quote and details) Feb 17 (Reuters) - Russia's central bank said on Friday that inflationary pressures across the economy had remained strong during the first two weeks of February, citing a slump in the rouble as a factor. Russia recorded inflation of 11.8% on an annual basis in January, almost three times the central bank's official 4% target. It signalled last week it was

preparing to raise base interest rates to cool inflation.

"Operational data for the first two weeks of February indicate the trend towards increased price pressures continues," the bank said on Friday in a report.

Prices across Russia have been extremely volatile in the year since Russia invaded Ukraine - with a period of rapid inflation following the imposition of Western sanctions followed by months of deflation as capital controls pushed the rouble higher.

But falling revenues from crucial oil and gas sales have again hit the Russian currency this year. The rouble has fallen 16% since the start of December, when a European Union embargo and G7 price cap on Russian crude sales came into force.

"The exchange rate has already affected (prices of) the most import-dependent products in January, and if the rouble remains at its current level, this will continue to have a pro-inflationary effect in the coming months," the bank's analysts said in the report.
(Reporting by Jake Cordell; Editing by Raissa Kasolowsky and John Stonestreet)

Reuters

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

off-the-wire

UPDATE 1-Russia's central bank says falling rouble driving inflation higher

By Reuters

Reuters

Reuters

Gold is never going back to $2,000: 'That's history,' prices to 3x from here – Peter Schiff

Solid price gains for gold, silver after busy news weekend

‘Biggest economic shift since Nixon’: Major U.S. monetary policy changes coming in 12-36 months – Jack Mallers

India joins South Africa in denying BRICS currency plans after Trump’s 100% tariff threat

Silver prices breach $32/oz as bullish technicals and fundamentals suggest potential breakout

off-the-wire

UPDATE 1-Russia&apos;s central bank says falling rouble driving inflation higher

By Reuters

Reuters

Reuters

UPDATE 1-Russia's central bank says falling rouble driving inflation higher