Annual inflation in Russia accelerated to 2.96%

Annual inflation in Russia in the week from June 14 to 19 accelerated again, reaching 2.96% after 2.87% and 2.68% in the past two weeks, reported Ministry of Economic Development. On a weekly basis, price growth slowed to 0.02% from 0.05% a week earlier.

In the segment of food products, prices decreased by 0.01% against the backdrop of a continuing decline in prices for fruits and vegetables. By data Rosstat, during this period, cabbage fell in price by 5.7%, tomatoes – by 4.7%, onions – by 2.5%. At the same time, prices for carrots increased by 5.3%, potatoes – by 5.0%, table beets – by 3.5%.

In the group of non-food products, prices increased again by 0.03%. The rise in prices for household and tourist services slowed down to 0.03%. Air tickets for domestic flights fell by 1.09%, but the cost of accommodation in hotels and resorts increased by 0.5-1%.

Since the beginning of June, according to Rosstat, prices have increased by 0.22%, and since the beginning of the year – by 2.61%.

The Board of Directors of the Central Bank at a meeting on June 9 for the sixth time in a row since September 2022 left the key rate at 7.5% per annum. But the regulator’s hawkish signal, as Vedomosti wrote, has become tougher: the Central Bank “allows” a rate increase at the next meetings

According to the regulator’s forecast, in the second quarter inflation will be at the level of 3.6%, and by the end of the year it may reach 4.5-6.5%. In 2024, inflation will reach a plateau. According to Russian President Vladimir Putin, inflation in Russia by the end of 2023 will be about 5%, which, according to him, is a normal level for the country’s economy.