Annual inflation in Russia accelerated to 4.66%

Annual inflation in Russia in the week from 8 to 14 August accelerated to 4.66% after 4.43% a week earlier, informed Minek. Over the week, prices rose by an average of 0.1%.

In the grocery segment, prices rose 0.01% compared to a 0.08% decline the previous week. By data Rosstat, fruits and vegetables fell in price by an average of 2.4%, while onions fell in price by 7.6%, potatoes – by 7%, carrots – by 6.1%, cabbage – by 5.2%, and tomatoes – by 4.3%. On the contrary, prices for other food products rose (by 0.22% after 0.09% a week earlier). So, pork and chicken prices went up by 1.5%, sunflower oil – by 0.5%.

In the category of non-food products, price growth accelerated to 0.21% after 0.12%. Passenger cars rose in price by 0.22% after 0.11%, and electrical and household appliances – by 0.49% after 0.43%. At the same time, the increase in the cost of building materials, medicines and cleaning products has slowed down. Gasoline rose in price by 0.53% after 0.63%.

In the segment of regulated, tourist and personal services, deflation (by 0.17%) a week earlier was replaced by a rise in prices by 0.07%. In particular, tickets for flights within Russia rose in price by 0.91% after falling in price by 3.89% the previous week.

Annual inflation in July was 4.3% after 3.25% in June, Rosstat reported on August 9. On a monthly basis, prices rose by 0.63%. As noted in the draft main directions of the Central Bank’s unified state monetary policy for 2024–2026, inflation will return to the target at the end of 2024 and will be close to 4% in the future. According to the regulator’s forecast, in the coming months, annual inflation will continue to rise against the background of rising price pressure, as well as the withdrawal from the calculation of low monthly growth rates in summer 2022.

On August 15, the Central Bank decided to raise the key rate by 3.5 percentage points at once to 12% against the background of the weakening of the ruble. The reason for the decision of the Central Bank is the increase in inflationary pressure and inflationary expectations, which are under pressure from the dynamics of the exchange rate. The regulator did not rule out a further increase in the rate in the event of increased pro-inflationary risks – the scheduled meeting will be held on September 15.