(Reuters) – Russia’s weekly inflation rate fell further in May after falling sharply after Russia launched a special military operation in Ukraine.

The central bank has lowered its key rate to 14% in April from 17%, but inflation is still slowing. It also stated that it sees room for further cuts as it attempts to control a shrinking economy with soaring inflation.

Inflation fell to 0.12% from 0.21% one week earlier, and was well below the 2.2% recorded in early March.

In recent weeks, almost all prices, including vegetables, sugar, clothes, and smartphones have gone up sharply due to Russia’s logistics problems and volatility in its rouble.

Rosstat reported that consumer prices have increased 11.78% year-to-date.

The annual inflation rate has increased to 17.73% since April. This is the highest point since 2002. Inflation is controlled by the central bank at 4%. The annual consumer price increase was expected to rise to 18-23% for the entire of 2022, according to the bank.