The Central Bank reported a gradual decrease in inflation pressure – Kommersant

The Russian economy continued to grow strongly in the first quarter of 2024. Inflationary pressures are gradually easing, although persistent inflation indicators still remain at elevated levels. This follows from the Central Bank’s bulletin “What Trends Are Saying.”

“A sustained slowdown in current seasonally adjusted consumer price growth to 4% annualized requires a further slowdown in demand growth. The reduction in inflationary pressure is gradual and will require maintaining tight monetary conditions for a long time,” the statement says. publications.

The Central Bank also notes that in the first quarter of 2024, the economy continued to grow at an even faster pace than in the fourth quarter of 2023. The exception is the fuel industry, which has reduced production for various reasons not related to domestic demand. Among the reasons for economic growth, the Central Bank names an increase in the level of budget expenditures when changing the parameters of the budget rule, as well as the processes of import substitution.

According to the Central Bank, in March the inflation rate in Russia slowed to 0.39% compared to 0.68% in February. In annual terms, inflation increased to 7.72% after February’s 7.69%.

Read more about the situation with inflation in the material “Inflation has moved toward its target”.

Evgeny Belousov