(Reuters) – Russia’s consumer inflation will accelerate in an annual basis due to base effects. The central bank warned Wednesday that rouble volatility would continue to cause inflationary pressure.

Month-on-month, Russian consumer prices rose 7.61% in March. This is their largest increase since January 1999. It was due to sanctions and record falls in the rouble.

Inflation increased year-over-year to 16.69% from 9.15% February and could reach 20% by this year’s officials.

The central bank stated that its policy would help to bring inflation down to 4% in 2024.

The central bank cut unexpectedly its key interest rate from 20% to 17% last week. Future cuts are possible as emergency measures have contained financial instability, returned deposits to banks, and limited the danger of inflation.