Recent data on Russia’s price dynamics show inflation easing to 2.32 percent, marking the most subdued level since February 2020 when it stood at 2.3 percent. The Ministry of Economic Development provides a detailed review under the program titled About the current price situation, which outlines the latest figures and trends observed in the economy.
A closer look at the period around May reveals that inflation registered 2.42 percent on May 2. Between May 3 and May 10, there were no new price hikes observed, indicating a pause in upward momentum. Food prices slipped slightly by 0.06 percent, and the rate of overall price increases decelerated as a result. Within the food category, prices for fresh fruits and vegetables also declined, contributing to the softer inflation pace noted during these days.
Beyond groceries, non food items also contributed to the softer price environment. Prices for non food goods fell by 0.01 percent during the same window. Notably, electricity costs trend downward, and the prices of major household appliances showed a downward drift as well. The easing in these broad categories helped to temper the overall inflation trajectory. Concurrently, the pace of increase in passenger car prices slowed, which adds to the broader picture of moderated price pressure across consumer sectors.
The Ministry highlighted a broader moderation in consumer services as well. The cost associated with home services rose at a slower pace, signaling a cooling in the services component of inflation and reflecting adjustments across households that influence overall living costs.
In a separate assessment, Elvira Nabiullina, former president of the Bank of Russia, signaled that the central bank would weigh the possibility of raising the key rate at the upcoming board meeting if early indicators show renewed price pressure that could threaten the 4 percent inflation target. This stance underscores the central bank’s readiness to adjust policy in response to evolving inflation risks while balancing growth and financial stability. (Source: Ministry of Economic Development)