Consumer prices in Russia resumed their gains ahead of the CBR course meeting

(Ministry of Economic Development data added)

MOSCOW, March 15 (Reuters) – Consumer prices in Russia rose by 0.02% from March 7 to 13, 2023, after zero growth and 0.02% deflation in the previous two weeks, Rosstat reported two days ahead of the next Bank meeting Central on key indicator.

Since the beginning of this year, according to the statistical service, inflation amounted to 1.32% against 9.95% in the first three months of 2022.

Annual inflation in the Russian Federation, according to the Ministry of Economic Development, slowed down to 7.65% by March 13 from 9.43% a week earlier compared to last year’s high base.

In March, prices in Russia surged after Moscow launched a “special military operation” in Ukraine and the West imposed massive sanctions, forcing the Central Bank to urgently raise its key interest rate to 20%.

The acceleration of inflation last week was supported by a slowdown in the fall in fruit and vegetable prices, as well as an increase in the cost of air travel.

Fruit and vegetables fell by an average of 0.2% after falling 2.0% a week earlier. Economy class fares rose 4.3% after falling 0.3% the previous week.

In 2022, consumer prices in Russia increased by 11.9%, which is three times the CBR target of 4%, which the regulator expects to return to in 2024, expecting inflation in 2023 in the range of 5-7%.

In mid-February, the Central Bank kept the interest rate at 7.5%, where it was in September 2022 after several easing cycles, but warned about its readiness to raise it at subsequent meetings in the event of an increase in inflation risk due to increased budget spending .

The majority of analysts polled by Reuters expect the Central Bank to keep the key interest rate again on Friday, especially after the publication of data on inflation expectations of the Russian Federation population, which fell significantly in March 2023 – to 10.7% from 12.2% in March Previous month. (Daria Korsunska)