Annual inflation in Russia slowed down to 12.4%

Annual inflation in Russia in the week from 8 to 14 November slowed to 12.4% after 12.52% a week earlier, follows from review Ministry of Economic Development “On the current price situation”.

During the reporting week, consumer inflation accelerated to 0.06% after 0.01% a week earlier. In the food segment, price growth slowed to 0.06% from 0.13% last week due to deflation in food products, except for fruits and vegetables (-0.15%), for which seasonal price growth continued.

In the group of non-food products, prices have not changed on average, a week earlier they fell by 0.06%. Building materials fell in price by 0.53%, while clothing, underwear and footwear – by 0.08%. Prices for passenger cars rose by 0.02%.

In the segment of regulated and travel services, prices rose by 0.14% after falling by 0.13% last week. Air tickets for domestic flights rose by 3.21% after falling by 2.14% a week earlier.

Yesterday, November 15, Chairman of the Central Bank Elvira Nabiullina statedthat inflation in Russia now is not much different from the rate of price growth in comparable economies, despite the fact that the Russian Federation had to deal with “much larger shocks.”

The Ministry of Economics earlier predicted inflation by the end of the year at 12.4%. A year earlier, this figure was 8.4%. It is assumed that in 2023 consumer price growth will be at the level of 5.5%, and in the future it will reach the target level of 4%. According to the results of this year, the country’s economy will contract by 2.9%, the Ministry of Economics expects, and in 2023 – already by 0.8%. In subsequent years, GDP growth is expected to be 2.6% per year.

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