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.
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Repost by C. Hagan
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