Central Bank: annual inflation in the Russian Federation will reach peak values ​​in the spring-summer of 2024

Annual inflation in Russia will reach its peak in the spring-summer of next year, Deputy Chairman of the Central Bank Alexei Zabotkin told reporters.

“The annual inflation rate will probably reach its maximum point somewhere in the spring and summer,” he said (quote according to TASS).

Commenting on the possibility of raising the key rate by the regulator at the next meeting, Zabotkin noted that by that time additional data will be received, so the feasibility of the increase in the Central Bank will be assessed in accordance with the updated forecast.

During a speech in the State Duma on October 10, Zabotkin saidthat annual inflation in the Russian Federation as of October 2 was 5.9%. To return inflation to the target of 4% in 2024, the regulator does not rule out tightening monetary policy (MP) next year, he emphasized.

Previously, Rosstat reported that inflation in Russia from September 26 to October 2 amounted to 0.21%, since the beginning of October – 0.06%. Since the beginning of 2023, prices have increased by 4.54%. According to the Ministry of Energy, annual inflation for this period amounted to 5.94%.

On August 15, the Central Bank raised the key rate by 3.5 percentage points to 12%. The reason was increased inflationary pressure and inflationary expectations, which are pressured by exchange rate dynamics. On September 15, the regulator again raised the key rate – by 1 percentage point to 13%. The Central Bank will keep the key rate at an increased level for “quite a long time,” Central Bank Chairman Elvira Nabiullina told reporters that day.

At a government meeting dedicated to budget priorities for 2024-2026, Minister of Economic Development Maxim Reshetnikov gave a forecast according to which inflation growth will slow down to 4.5% by the end of 2024, and will reach 4% in 2025.