Annual inflation in Russia accelerated to 5.45%

Annual inflation in Russia in the week from September 12 to 18 accelerated to 5.45% versus 5.33% a week earlier, according to the weekly review of the Ministry of Economic Development.

In weekly terms, the price increase was 0.13%, as in the previous week. Prices for goods in the food segment increased by 0.25%, while a week earlier the increase was 0.10%. The review states that the decrease in prices for borscht vegetables did not compensate for the increase in prices for cucumbers (3.67%) and tomatoes (8.41%) – the cost of fruits and vegetables increased by 0.66%.

Food prices continued to rise – 0.22% after 1.18%. During this period, all meat prices increased, with chicken showing the greatest increase – 1.25%. Prices for eggs, bread, and buckwheat also increased. At the same time, prices for sugar (-0.17%), flour (-0.08), tea (-0.28%) continued to decline.

In the group of non-food products, the rate of price growth remained at the level of the previous week – 0.21%. At the same time, the growth in prices for passenger cars slowed down – to 0.03% after 0.23%. The ministry noted that this is happening against the backdrop of a slowdown in the rate of increase in prices for both domestic and foreign cars. Gasoline prices, on the contrary, continued to rise – to 0.79%, and for diesel fuel – to 2.03%. Similar dynamics can be seen in the medicines segment – ​​an increase of 0.16% versus 0.01%. Prices for shoes and clothing have also resumed rising.

In the field of tourism and personal services, prices fell by 0.16% over the week after rising by 0.13%. Against the backdrop of falling prices for air tickets for domestic flights (-3.46%) and sanatoriums, deflation in the tourism services segment resumed by 1.63%. The growth in prices for household services slowed by 0.04%, whereas a week earlier it was 0.07%. This happened due to a drop in prices for women’s haircuts and TV repairs.

In September the Bank of Russia predictedthat annual inflation will continue to rise in the coming months due to increasing price pressure. In 2023, annual inflation will be 6-7% in 2023. It will return to 4% in 2024 and will remain at this level in the future. The Central Bank also clarified that to limit the deviation of inflation from the target and return it to 4% in 2024, an increase in the key rate was required.

Ministry of Economic Development earlier increased inflation forecast in 2023 in Russia from 5.3% in the April version to 7.5%. For 2024, expectations have changed from 4% to 4.5%. Indicators for 2025 and 2026 remained the same – at the level of 4%.