Consumer prices grew by an annual 9.5% in April and core inflation rose to 10.3%. The last time the inflation was as high was in summer of 2001. The increase in food prices is particularly noticeable at 15.6% year-on-year and 3.4% month-on-month. Compared to March, prices increased by 1.6%, in the period January-April by an average of 8.5%.
On the one hand, the reasons for the price increase is the highest level of inflation in decades worldwide. The reason is the rising energy and food prices as a result of the Ukraine war. On the other hand, the government stimulated demand with important one-off measures (income tax rebate for families raising children, 13th month pension, increase in the minimum wage by 20%). Still, price caps on fuel and selected food items are curbing inflation, which analysts say would otherwise hover around 15%.