(Reuters.) – Russia’s consumer inflation accelerated in April and reached 17.83% year-on–year. It was the highest level since Jan 2002. The volatile rouble, along with unprecedented Western sanctions which disrupted logistics chain, gave Russia a boost.

The monthly inflation fell to 1.56% from 7.61% during March, when it experienced the greatest month-on–month growth since January 1999. Rosstat data showed that this was due to the slowing of the rate of inflation.

Russia’s inflation has increased dramatically since Russia started what it refers to as “a special army operation” in Ukraine in February 24.

Due to expectations of higher prices, the fall in rouble from record levels in March has increased demand for all kinds of goods. These include food staples as well as cars. Since then, the rouble recovered and was able to hold a nearly five-year record against the euro.

Since years high inflation has been a concern of households. It damages living standards and is a problem that can be aggravated by economic contraction.

While the central bank has set a target inflation of 4%, it expects that this will rise to 18-23% in 2012. After a late February emergency rate rise to 20%, the central bank has reduced its key rate by 14% and stated it sees room for more monetary ease to aid the economy.

Rosstat shared the following:

RUSSIAN IPI April 22 March 22April 21

Change in Mth/Mth pct +1.56% +7.61 +0.58%

– Food +2.87% +6.73 (+0.75%)

– non-food +0.53% +11.25 +0.66%

– Services +1.07% +3.99+0.22%

Y/Y change in pct +17.83% +16.69 -5.53%

Core CPI y/y change +20.37% +18.69 (+5.47%)