Nabiullina assured that inflation will decrease
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Inflation in Russia will decline and reach the target level of 4%. This was stated by the Chairman of the Bank of Russia, Elvira Nabiullina, at the Moscow Financial Forum.
“Inflation will decline and reach our target of 4%,” she said.
At a government meeting dedicated to budget priorities for 2024-2026, Minister of Economic Development Maxim Reshetnikov gave forecast according to which inflation growth will slow down to 4.5% by the end of 2024, and reach 4% in 2025. In addition, in September the Ministry of Economic Development increased inflation forecast in 2023 in Russia from 5.3% in the April version to 7.5%. As the ministry explained, the change in the forecast is due to the volatility of the ruble.
In September, the Bank of Russia predicted that annual inflation would continue to rise in the coming months due to increasing price pressure. In 2023, annual inflation will be 6-7%. It will return to 4% in 2024 and will remain at this level in the future, the Central Bank said. The regulator clarified that this required an increase in the key rate.
On September 15, the Central Bank raised the key rate by 1 percentage point to 13%. This is the third consecutive rate increase in a month and a half: first, the Central Bank raised the rate at a meeting on July 21 by 1 percentage point to 8.5%, and then unscheduledly increased the rate on August 15 immediately to 12%.
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