Inflation in Russia continues to slow

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The surge in consumer prices recorded earlier this year amid Western sanctions has been gradually subsiding

Annual inflation in Russia slowed during the week ending December 19, according to official data released on Thursday by Rosstat, the country’s official statistics agency.

The weekly inflation report showed prices having decreased by 0.3% against the previous week to reach 12.35% in year-on-year terms.

The price increases in the food segment slowed to 0.10% from 0.15% a week earlier due to a drop in the cost of fruit and vegetables. Rosstat noted that the prices on certain food items even fell below last year’s levels.

The non-food sector also recorded deflation, of 0.03%, mainly due to a decline in prices on electricity and household appliances. Prices on travel and tourism services fell 0.18% owing to a decrease in the cost of airline tickets and hotels, the report noted.

Inflation in Russia spiked to a 20-year high of nearly 18% in April against the backdrop of Ukraine-related Western sanctions. It has been gradually dropping in the subsequent months as the economy started to recover, trade flows were reoriented and the ruble strengthened. The indicator is still far above the central bank’s 4% target, however.

The Ministry of Economic Development forecasts annual inflation in Russia finishing this year at 12.4% and dropping to 5.5% next year. The central bank has issued similar forecasts, predicting a drop to 5-7% in 2023, and for price growth to fall to as low as 4% by 2024.

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