The Central Bank predicted an increase in annual inflation in the coming months

In the coming months, annual inflation will continue to rise due to rising price pressures. This forecast published Bank of Russia.

“According to the forecast of the Bank of Russia, annual inflation will continue to rise in the coming months. This will be associated with increasing price pressure. Significant pro-inflationary risks have materialized: growth in domestic demand, outpacing the possibilities for expanding output, and weakening of the ruble,” the regulator said in a statement.

Taking into account the current monetary policy, in 2023 annual inflation will be 6-7% in 2023. It will return to 4% in 2024 and will remain at this level in the future. The Central Bank also clarified that to limit the deviation of inflation from the target and return it to 4% in 2024, an increase in the key rate was required.

In August 2023, consumer prices increased by 0.28%. Although seasonally adjusted monthly price growth slowed, it remained high: 0.75% in August compared to 0.96% in July. The average monthly price increase over the summer was 0.72%. In annual terms this corresponds to 9%.

August 18, Russian President Vladimir Putin described the current economic situation as stable and balanced. At the same time, he called the acceleration of inflation one of the main problems of the Russian economy.