Annual inflation in Russia accelerated to 3.21%

Annual inflation in Russia in the week from 20 to 26 June accelerated again, reaching 3.21% after 2.96% and 2.87% in the past two weeks. In weekly terms, price growth also accelerated to 0.16% after 0.02% a week earlier, reported Ministry of Economic Development.

Since the beginning of June, the price increase has amounted to 0.38%, and since the beginning of the year – 2.77%, notes Rosstat.

In the food segment, prices increased by 0.16% after a two-month decline. This was affected by the rise in the price of fruits and vegetables by 0.31%. Carrots rose in price by 4.2%, potatoes – by 4.1%, and beets – by 1.5%. At the same time, onions fell in price by 3.9%, and tomatoes – by 2.4%.

Non-food items added 0.19% on average after rising 0.03% the previous week. The seasonal rise in prices for building materials (+0.84%) and household appliances (+0.47%) had an effect, the Ministry of Economics notes. Prices for tourism, household and regulated services increased by 0.18%, the previous week the growth was 0.03%. Air tickets for domestic flights became more expensive by 1.4%, and hotel accommodation – by 0.4-0.7%.

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” the rate increase at the next meetings. At the same time, today, June 28, Deputy Chairman of the Regulator Alexei Zabotkin allowed rate increase.

According to the forecast of the Central Bank, in the II 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. The regulator’s target for inflation is 4%. 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.