Annual inflation in the Central Federal District of Russia rose to 7.5% in February 2024, after 7.3% in January. By comparison, overall annual inflation in Russia reached 7.7% in February, after 7.4% in January. Alexandra Lvova, chief economist of the Main Directorate of the Central Federal District of the Central Bank, told socialbites.ca.
“The main reasons for the increase in prices in Central Russia are the increasing costs of manufacturers of a number of non-food products and the continued high demand for them. “At the same time, in the Moscow region, unlike the Central Federal District, annual inflation in February this year continued to fall and reached 7.1% after 7.2% in January,” he said.
According to him, prices have increased more slowly on an annual basis due to the fact that more fruits are on sale in the Moscow region and the measures taken by the Russian government to stabilize prices. The chief economist explained that, therefore, the actions of the authorities in the chicken egg market caused a price correction after the peak values in previous months. That is why chicken egg prices in the Moscow region increased more slowly in February than a month ago.
Lvova also added that the supply of oranges in the Moscow region has increased due to increased supplies from supplier countries. As a result, orange prices increased more slowly on an annual basis in February than in the previous month.
Lvova said that the annual increase in prices for excursion services in the Moscow region has also decreased.
“In February 2023, demand for holidays in Russia increased due to limited options for foreign tourism, which led to an increase in prices. Since there was no such demand in February 2024, prices did not rise that much. “As a result of the high base effect, prices for sightseeing tours within Russia, as well as holiday trips to the Black Sea coast, increased more slowly in February on an annual basis than in the previous month,” Lvova concluded.
According to the Central Bank’s prediction, considering the current monetary policy, annual inflation across the country will decrease to 4-4.5 percent in 2024 and will remain close to 4 percent in the future.
Formerly Central Bank was recorded Considering inflation and inflation expectations, the key rate was determined as 16%.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.