31 December 2014
Last updated at 12:13
Russia’s annual inflation for 2014 will hit about 11.4%, according to official estimates, driven higher by the plunging value of the rouble.
The currency’s falling value has pushed up prices, particularly of food, which rose about 15.4% during the year.
The state statistics service Rosstat said that consumer prices rose 2.6% in December, a month when the rouble suffered some of its steepest falls.
Rosstat is due to publish final inflation data on 12 January.
In 2013, the annual inflation level was 6.5%. The 2014 inflation figure is the highest since Russia’s financial crisis in 2008.
Lower oil prices and Western sanctions imposed over Ukraine have driven down the value of the rouble, meaning that the price of many goods – especially imports – have risen.
Rosstat said that the price of non-food products rose by 8.1% during 2014, while service charges went up by 10.5%.
Russia’s economy shrank in November for the first time in five years, and is expected to enter recession in the first quarter of 2015.
A fall in the price of oil has cut revenues earned by the government, while sanctions imposed over Russia’s actions in Ukraine have hit the banking sector by cutting off foreign lending.
On Tuesday, VTB, Russia’s second largest bank, said it had received 100bn roubles ($1.8bn; £1bn) from the country’s national welfare fund, part of a scheme to recapitalise the banking system.
And on Wednesday, the government said it had bought almost 41bn roubles worth of state bank Gazprombank’s shares as part of the support plan.