Nabiullina allowed further decline in annual inflation in April

Annual inflation in Russia fell below 4% in March 2023, and is likely to continue to decline in April, Central Bank Chairman Elvira Nabiullina said in the State Duma.

“Now the key rate remains at the level of 7.5%. We have been keeping it at this level for six months now. Yes, the annual inflation rate fell below 4% in March and will probably fall further in April. But these low annual figures mostly reflect very low monthly price growth rates last summer and autumn. Now the rate of price growth remains moderate, but they are still higher than they were in summer and autumn,” said the head of the regulator.

A day earlier, at a meeting on economic issues, Russian President Vladimir Putin declaredthat by the end of April inflation is expected to be below 3%. He noted that as of April 3, annual inflation had dropped to 3.3%. The head of state urged to avoid excessive acceleration and deceleration of inflation, as this may affect business plans, the incomes of the country’s residents and the volume of budget revenues. Putin also said that forecasts for the dynamics of Russia’s GDP have been significantly improved against the backdrop of positive statistics.

From the report of the Ministry of Economic Development on April 5 “On the current price situation” shouldthat annual inflation in Russia in the week from March 28 to April 3 amounted to 3.29% after 4.3% a week earlier. On a weekly basis, price growth accelerated from 0.05% the previous week to 0.13%. How notes Rosstat, inflation has been 0.06% since the beginning of April, and 1.6% since the beginning of the year.

At the beginning of February, the Central Bank warnedthat in the coming months, annual inflation in Russia will fall below 4% due to the effect of a high base in 2022. will return to the 4% target.