Russian consumer sentiment fell to the lowest level on record in November amid soaring inflation and a sliding currency.

Russian consumers have lost confidence in the economy; it fell by 5.1% from the previous month, exacerbating the trend of worsening sentiment that began at the onset of the Ukraine crisis.

"Things went from bad-to-worse in November with sentiment falling sharply to an all-time low as respondents became increasingly concerned about their household finances, business conditions and the housing market," said MNI Indicators' chief economist Philip Uglow.

"The slide in the price of oil and significant weakening in the rouble suggest confidence could fall even further over the coming months. Moreover, it is becoming more likely that the Bank of Russia will have little option but to tighten monetary policy further, causing additional pain to an economy on the brink of collapse."

Russia's government relies on oil and gas exports for around half of its annual budget, but crude oil prices have fallen by around 40% since the summer.

Meanwhile, analysts predict that Russia's central bank is set to tighten monetary policy in a bid to boost financial stability. The Bank of Russia could raise its key interest rate to 10% from 9.5% when it announces its decision in Moscow on Thursday.