Experts predicted inflation at 3% in the spring

Annual inflation in Russia in the spring of 2023 may temporarily drop below 4% on the effect of a high base, the Bank of Russia noted in the information and analytical commentary “Dynamics of Consumer Prices”. In the first quarter, it is expected to be around 5% and there is a tendency to further decline, President Vladimir Putin noted on January 18.

According to the Central Bank, in December, consumer prices in Russia increased by 0.78% on a monthly basis. The main upward contribution was made by earlier indexation of tariffs for utilities – by an average of 8.54%, the regulator pointed out: it added 0.3 percentage points to monthly inflation. The slowdown in price growth in May-December 2022 partly offset the price spike that occurred in March-April, the regulator added. According to the Central Bank forecast, in 2023 inflation will be 5-7%, in 2024 it will return to the target of 4%. In 2022, inflation in Russia amounted to 11.94% after 8.39% in 2021, follows from Rosstat data. It reached its peak in April, accelerating to 17.83% from 16.69% in March.