Inflation in annexed Crimea exceeded Russia’s by 2.5 times. Gasoline more than tripled in price over the year. The reason is the fuel crisis.

Forwarded From The Insider

📈Inflation in annexed Crimea exceeded Russia’s by 2.5 times. Gasoline more than tripled in price over the year. The reason is the fuel crisis

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Annual inflation on the Crimean Peninsula significantly exceeded the nationwide Russian figure: in Crimea it reached 15.79%, in Sevastopol 14.74%, versus 5.98% on average across Russia. This follows from Rosstat data examined by The Insider.

The Central Bank explains the price surge by a reduction in fuel supply due to repairs at oil refineries and problems delivering fuel to the peninsula. Expensive fuel drove up transportation costs, and along with them the cost of construction materials and other goods.

Food prices were also affected by reduced production at Crimean poultry farms and power outages: because of the blackouts, residents began buying more food that can be stored for a long time without refrigeration.

Logistical problems also hit tourism. The Central Bank recorded a decline in tourist traffic to Sevastopol, including because of transportation accessibility problems. Because of falling demand, sanatoriums, boarding houses, and hotels were forced to lower prices at the height of the season.

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The Insider

Inflation in annexed Crimea exceeded Russia’s by 2.5 times. Gasoline more than tripled in price over the year. The reason is the fuel…

Annual inflation on the annexed Crimean Peninsula in July significantly exceeded the nationwide Russian figure: in the Republic of Crimea it reached 15.79%, in Sevastopol —…