Officials in Russia reaffirm that price growth is expected to stay high through 2024, signaling persistent inflation pressures across the economy. In a report delivered before the Federation Council, a senior minister outlined projections that place annual inflation near multi‑year highs while still leaving room for gradual easing as the year progresses. The remarks were reported by TASS, the Russian news agency.
The minister highlighted a forecast for December 2023 to December 2024 inflation at roughly 7.5 percent, with an average annual rate projected around 7.2 percent for the next year. The outlook underscores a trend where price growth remains elevated, even as policymakers anticipate a measurable slowdown compared with the immediate past. In the government’s view, the year will begin with inflation at elevated levels and gradually ease, though the pace of decrease is not expected to be rapid.
In a further update, the minister noted an expected deceleration in the year‑over‑year rate to the 4.5 percent range by December 2024, yet emphasized that the level will still be clearly higher than historical norms for a considerable period. This cautious projection reflects continued price pressures across key consumer categories and interacts with fiscal and monetary policy settings as the economy adapts to evolving conditions.
On the horizon, the Central Bank of the Russian Federation released a forecast indicating that annual inflation will continue to trend upward in the near term due to mounting price pressures. The central regulator predicted that 2023 would close in a band of 6 to 7 percent, with inflation expected to retreat toward around 4 percent in the following year. This outlook aligns with a broader policy framework aimed at stabilizing the ruble while supporting domestic demand and financial stability under certain external scenarios.
The day after these assessments, President Vladimir Putin directed the Council of Ministers and the Central Bank to implement measures designed to strengthen the ruble. In response, government officials announced that work had begun to advance these steps, signaling an integrated approach from both fiscal and monetary authorities to guard against excessive volatility and to maintain confidence in the currency amid global uncertainties.
Earlier, the Bank of Russia had warned about the risks associated with a rapid devaluation of the ruble, highlighting the importance of prudent policy responses to balance inflation with exchange rate stability. Analysts and policymakers continue to weigh tradeoffs between price growth, currency strength, and the broader economy as they monitor developing conditions and respond to evolving domestic and external pressures. [Source: TASS]