According to the regulator, by the end of 2024 inflation is expected to slow down from the current 9.11% to 8% annually. This is evidenced by data published by the Central Bank of the Russian Federation.
According to Rosstat, as of the end of July, inflation in the country reached 9.11% annually. However, the Central Bank of the Russian Federation predicts that price growth will slow down to 7.8% in the coming months due to the influence of high interest rates.
According to Bank of Russia forecasts, inflation will not exceed 5.8% in 2025 and will return to the target level of 4% in 2026.
The regulator also revised its economic growth forecast. GDP growth is expected to be 3.5-4% in 2024. The forecasts are 0.5-1.5% for 2025, 1-2% for 2026 and 1.5-2.5% for 2027.
The Central Bank notes that the first signs of a slowdown in economic growth in Russia appeared in the summer of 2024.
“A higher interest rate will help reduce inflation pressure in the coming months,” the regulator said in its summary.
Previously a financier guess Mass layoffs due to increase in key interest rate.
Formerly Ministry of Finance appreciated Russia’s budget deficit.
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Source: Gazeta
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