Inflation hits 10.4% in Russia as rouble value falls

An employee of a local company, producing equipment for electrical meters, counts Russian rouble banknotes in Stavropol, southern Russia, Dec 17, 2014. -- PHOTO: REUTERS
An employee of a local company, producing equipment for electrical meters, counts Russian rouble banknotes in Stavropol, southern Russia, Dec 17, 2014. -- PHOTO: REUTERS

MOSCOW (AFP) - Russian inflation has climbed into double digits - hitting 10.4 per cent, data released Wednesday showed, indicating that prices could be growing faster than expected due to the depreciating ruble.

Consumer prices rose by 0.9 per cent last week alone, the state statistics service said, with pronounced jumps in the cost of some types of produce and sugar, which rose by 7.5 per cent.

Many consumer goods are imported into Russia, meaning the slide in the value of the rouble will eventually feed through onto price tags of products.

The central bank said earlier this month that it expects inflation to hit 10 percent before the end of the year and then peak at 11.5 per cent in the first quarter of 2015.

Russia's economy ministry predicted inflation would remain in single digits.