Abramchenko: the increase in food prices at the end of the year will not exceed inflation

The increase in food prices in Russia at the end of 2023 will not exceed general inflation, stated Deputy Prime Minister Victoria Abramchenko in a commentary to RIA Novosti.

“We are staying within the corridor that was set, that is, we will not exceed general inflation. We will definitely stay within the limits we planned,” she said.

Abramchenko noted that global food inflation is 18-20%.

On October 27, the Bank of Russia raised the key rate by 2 percentage points to 15%. The Central Bank explained the need to tighten monetary policy by significant current inflationary pressure, a steady increase in domestic demand, which increasingly exceeds the capacity to expand the production of goods and services, as well as high rates of credit growth. The head of the Central Bank, Elvira Nabiullina, told reporters that the transition to lowering the rate will be possible only after a steady decline in inflation has been recorded.

On October 27, the regulator also updated the forecast for annual inflation: now the regulator expects that by the end of 2023 it will be in the range of 7-7.5% (the previous year was 6-7%). Next year it will drop to 4-4.5% and will remain close to 4% in the future.

On October 10, Deputy Chairman of the Central Bank Alexei Zabotkin, during a speech in the State Duma, noted that in order to return inflation to the target of 4% in 2024, the regulator does not rule out tightening monetary policy next year, he emphasized. Annual inflation in Russia will reach its peak in the spring and summer of next year, Zabotkin added.