Annual inflation in Russia slowed down to 2.42%

Annual inflation in Russia in the period from April 25 to May 2 slowed to 2.42%, according to the review of the Ministry of Economic Development “On the current price situation.”

On a weekly basis, inflation accelerated to 0.19% from 0.1% the previous week. Since the beginning of April, the price increase has amounted to 0.05%, and since the beginning of the year – 2.18%, follows from the data of Rosstat.

According to Rosstat, prices for mutton (+2.1%), granulated sugar (+0.9%), chicken meat (+0.8%), fruit and berry preserves for baby food (+ 0.7%), boiled sausages and rice (+0.5%), etc. Prices for fruit and vegetable products decreased by an average of 0.8%, including cucumbers (-8%), as well as eggs (- 1%), buckwheat and millet (-0.6% and -0.3% respectively).

According to the Ministry of Economy, the main contribution to the acceleration of inflation was made by an increase in the growth rate of prices in the service sector (+0.16%) due to an increase in the price of air tickets and services of sanatoriums. The acceleration of inflation was also affected by rising prices in the non-food sector (+0.39% after 0.02% a week earlier) due to the resumption of growth in prices for electrical appliances and Russian-made cars.

Earlier today, May 4, Economic Development Minister Maxim Reshetnikov during a working meeting with Russian President Vladimir Putin informedthat in April annual inflation in Russia amounted to 2.6%. According to him, this figure is now one of the lowest among developed countries.

In March, inflation in Russia amounted to 3.5%. The decline in Russia’s GDP in March slowed to 1.1% in annual terms from 2.9% in February, reported earlier in the Ministry of Economic Development. According to the results of the first quarter of 2023, the country’s GDP decreased by 2.2%.

Last week the Bank of Russia improved forecast for inflation and the rate of recovery of the Russian economy in 2023. The regulator now expects GDP growth of 0.5-2%, although back in February it predicted a decline. According to the Central Bank, inflation in 2023 will be 4.5-6.5%, in February it was expected at the level of 5-7%.