Weekly inflation in Russia remains almost unchanged for the second week in a row

MOSCOW, May 17 (Reuters) – Consumer prices in Russia rose slightly last week, according to data from the state statistics office.

Inflation in the Russian Federation from 11 to 15 May 2023 amounted to 0.04% vs. 0.00% a week earlier.

Since the beginning of May, prices have increased by 0.09% against 0.12% in May 2022 and by 2.15% since the beginning of the year.

Among groceries, during the last week the prices of granulated sugar increased the most – by 1.1% and poultry meat – by 1.0%. At the same time, the prices of fruit and vegetables increased by 0.9% on average.

The cost of flying in an economy class cabin increased by 3.4%.

Russia hit double-digit inflation last year shortly after launching a “special military operation” in Ukraine in late February, triggering broad Western sanctions. In March this year annual inflation fell below the central bank’s target of 4%, which is due to last year’s high base effect.

Despite the slowdown in annual inflation, the Central Bank regularly warns of persistent inflationary pressures.

In late April, representatives of the Bank of Russia said that an increase in the key rate may be necessary at subsequent meetings if the regulator sees signs of accelerating inflation, which will jeopardize the 4% target in 2024.

CBR estimates inflation in 2023 in the range of 4.5-6.5% after an 11.9% increase in prices last year. (Moscow office)