Inflation in Russia has slowed for two consecutive weeks since the beginning of 2024. The newspaper writes that between January 10 and 15, the price increase decreased by half, from 0.26% to 0.13%, and the annual price increase also slowed down. “News”.
Inflation in Russia reached 7.42 percent in 2023. For six months prices rose very slowly; For example, annual price growth in May was only 2.5%, even taking into account the high base. But in the autumn months, inflation accelerated sharply, despite an even sharper increase in refinancing rates: the key rate doubled from 7.5% to 15%. Inflation rose to 6% in September and rose by almost one and a half points by the end of the year.
Overall, food (especially eggs), medicines, fuel and services were the biggest contributors to inflation in 2023. The price of non-food items increased by only 5.5%. Core inflation, which excludes volatile components such as fuel and food, recorded more moderate growth than the overall indicator.
However, according to the report of the Ministry of Economic Development, there is a serious slowdown in price increases in the second week of January 2024. Inflation fell in both weekly (0.13%) and annual (7.4%) statistics. While prices for services remained virtually unchanged, food prices rose three times slower. The inflation rate increased slightly in non-food sectors.
Ilya Fedorov, chief economist at BCS World of Investments, noted that the slowdown in price growth is due to current market factors rather than anything more fundamental. He added that credit availability has decreased and deposits continue to increase, leading to a slowdown in non-food inflation.
S+Consulting Director Alexander Silakov said that cooling has occurred, but a global change in the price increase rate should not be expected.
“Inflation is heterogeneous across different segments and products. There are realities to price reductions, too. “For example, buckwheat, the traditional indicator of yesteryear, has lost more than 30 percent of its value in two years,” he said.
Alexey Rodin, formerly the financial advisor to the heads of the family given Advice to remember that you may lose some of your funds in terms of currency when investing in real estate.
Previously Mishustin in the name Avoid excessive optimism.