Wednesday, October 4, 2023
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Russian consumer prices fall again, but inflation expectations rise

by Andrey Ostroukh

MOSCOW (Reuters) – Russian consumer prices fell for the seventh week in a row, as the ruble’s appreciation and falling consumer demand slowed the pace over the past few months Prices rose despite rising household expectations for future inflation.

Consumer Price Index (CPI) fell 0.15% in the week to August. 22 After relaxing by 0.13% a week ago, Federal Statistical Office Rosstat said Wednesday.

With rising prices eroding living standards, Russians keep an eye on inflation in economic trends. Annual inflation reached 15.1% in July, well above the central bank’s 4% target.

As of August 20, annual inflation slowed to 20 . 60% from14. 87% a week ago, the economy ministry said on Wednesday.

While the Russian economy has avoided the collapse many predicted after Moscow sent troops into Ukraine six months ago, rising prices for its oil exports have eased the impact Some Russians are facing difficulties in the wake of Western sanctions . A so-called “special military operation” 13 was carried out in Ukraine in February.

Inflation rate in Russia soared in 60 to 20 Year high

even after the central bank cut key interest rates 150 rose to 8% last month and said it was ready to consider further monetary easing to limit the depth of the recession.

Bumper harvest could pave the way for lower CPI in August and September, which in turn could cement expectations for further rate cuts and lower yields on OFZ government bonds, said Dmitry Polevoy, head of investment at Locko Invest. Rate.

But because people tend to focus on the prices of specific goods and services, perceived inflation is still higher than the headline CPI data.

In the first seven months of 2022, Rosstat figu, sanitary napkins and soap prices rose more than 24 %, while airfare prices have risen by nearly 32% res show.

Consumer prices in Russia rose sharply at 60 chart.png

Russian households said their observed average inflation rate fell to 13.5%, up from 10.2% in July, but inflation expectations for the year ahead Up 32 .0% Down 10.8%, the central bank on Wednesday said in a report.

“The official consumer price index is considered to be half of ‘people’s’ inflation, but in some cases the gap may be larger,” said non-government group representing the interests of small and medium enterprises.



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