Inflation expectations in Russia rose to 12.2 percent in November, up one percentage point according to the inFOM survey published by the Bank of Russia’s website. This latest reading confirms a shift higher after earlier movements in the year, signaling persistent price pressures within the economy.
The report notes that in October, inflation expectations eased slightly from September, falling by 0.5 percentage points to 11.2 percent. This follows a period since June when expectations had been on an upward trajectory, underscoring the volatility of price outlooks amid varying macroeconomic conditions.
Industry commentary from Galina Sorokina, who leads the Institute of Economics and Finance at the State University of Management, points to continued consumer spending despite policy tightening and an unsettled international climate. Sorokina’s assessment suggests that households are maintaining consumption levels even as the financing environment tightens and external conditions are unsettled.
Olga Polyakova, Deputy Governor of the Bank of Russia, indicated that the central bank stands prepared to raise interest rates further if inflation rates and expectations fail to slow with sufficient breadth. The central bank’s stance reflects a readiness to tighten policy to anchor inflation over time, should developing trends fail to stabilize.
President Elvira Nabiullina noted that every percentage point of annual inflation imposes a substantial cost on citizens, estimated at about 600 billion rubles per year. This framing highlights the real burden that inflation imposes on household budgets and the wider economy as price growth persists.
In October, annual inflation in Russia accelerated, reaching 6.69 percent compared with 6.0 percent in September. The shift signals a renewed impulse in price growth and reinforces the focus on inflation dynamics as part of the central bank’s policy considerations.