MOSCOW--Russian inflation accelerated as the ruble plummeted in December to a rate of 11.4% for the year, the highest level since the 2008 financial crisis. Many retailers started raising prices in December as the ruble's losses against the dollar soared over 40% for the year amid Western sanctions on Russia and a plunging price for oil, the country's main export. Consumer prices rose 2.6% in December compared with the previous month, according to preliminary data from the State Statistics Committee published Wednesday. In November, annual inflation was 9.1% Food prices rose 15.4% on the year, while non-food inflation stood at 8.1%, the data showed. Last year, consumer prices rose 6.5%. Russia's economy is facing stagflation, a combination of low growth and stubbornly high inflation, and is likely to fall into recession next year after the central bank jacked up lending rates to support the beleaguered ruble.
Write to James Marson at james.marson@wsj.com
Repost by C. Hagan
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