Putin warns of economic strife should inflation rise uncontrollably

Russian President Vladimir Putin on Tuesday said increasing inflation had forced the central bank to hike rates to 12% last month, warning that Russia's economy would suffer if price rises were allowed to get out of control.

Putin, speaking at the Eastern Economic Forum in Vladivostok, said he saw no problems with rouble volatility and said the authorities had a cache of tools to keep the currency and markets under control.

The rouble hit its strongest level in almost six weeks against the dollar in early trade on Tuesday, buoyed by gradually increasing foreign currency sales by exporters and prospects that the central bank may hike rates again this week.