Russia’s inflation rate rose to the highest in 11 months in November, putting pressure on the central bank to increase interest rates to keep a lid on consumer-price growth.
Inflation gained to an annual 8.1 percent, compared with 7.5 percent in October, the Federal Statistics Service said in an e-mailed statement today. The median estimate in a Bloomberg survey of 15 economists was for 8 percent. Prices advanced 0.8 percent in the month.
Annual inflation is increasing for the fourth month after the worst drought in at least half a century crippled agriculture and drove up food prices. Inflation risks “due to monetary factors” are at an acceptable level, the central bank said in a statement on Nov. 26, when it kept its main interest rates at a record low for a sixth month.
“As soon as we see some growth” in demand-side inflation, Bank Rossii could react on three fronts, First Deputy Chairman Alexei Ulyukayev said in an interview in London on Dec. 1. “First, the policy rate; second, the reserve requirements; and third, the exchange rate performance. We’ll be watching the situation and make our decision accordingly.”