Russian inflation breaks above 5% in August

Russian inflation breaks above 5% in August

Russian inflation broke above 5% in August, up from May's all time low of 2.4% and on course to end the year at around 5-6.5%, according to the CBR / bne IntelliNews

By Ben Aris in Berlin August 31, 2023

Russia’s inflation accelerated to 5.03% on August 22-28 from 4.88% in the previous week, the Economic Development Ministry reported on August 31. (chart)

"During the week from August 22 to 28, 2023 the growth of prices on the consumer market slowed down to 0.03%. Year-on-year inflation amounted to 5.03%. A decline in price growth rates in the non-food segment… made the main contribution to inflation slowdown in the reporting week. Deflation rates in the sector of services also increased…. In the food sector the price growth is moderate, by 0.06%," the ministry said as cited by Tass.

After having fallen to a record low of 2.4% in May this year, inflation has begun to climb again on the back of heavy state spending and a tight labour market. The CBR expects inflation to continue to rise for the rest of this year, due to the effects of the war on the economy.

According to the CBR projections, inflation in Russia will reach 5-6.5% by the end of this year.

Consumer prices grew by 0.61% on average month on month over the past three months, which equals 7.6% in annual terms, according to the regulator.

According to the revised outlook on Russia’s social and economic development prepared by the Economic Development Ministry, inflation in Russia is expected to be 5.3% this year.

#macro #bneChart #Russia #inflation

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