Consumer price growth remains high
20 January 2025
News
In December, seasonally adjusted inflation accelerated. Most measures of underlying price growth, including core inflation, were up. This suggests that the rise in demand continues to outstrip the economy’s capacities to expand the output of goods and services.
The high key rate spurs an increase in savings and cools down excessive demand for loans. As a result, growth in demand and prices will slow down. The Bank of Russia forecasts that annual inflation will return to 4% in 2026.
More details are available in the new issue of the Bank of Russia’s information and analytical commentary Consumer Price Dynamics.
Preview photo: Andrei_R / Shutterstock / Fotodom