Annual inflation increased to 6.7% in October from 6.0% in September. Persistent inflationary pressures were still elevated. However, seasonally adjusted month-on-month price growth slowed down due to drops in prices for individual goods and services.
There was a considerable decline in prices for goods and services prone to frequent and significant changes. Foreign tourism services and motor fuel became cheaper in October. Fuel prices were falling due to restrictions on exports and changes in taxation parameters. Growth in prices for fruit and vegetables slowed down noticeably.
According to the Bank of Russia’s forecast, annual inflation will come in at 7.0–7.5% as of the end of 2023. Given the current monetary policy stance, annual inflation will go down to 4.0–4.5% in 2024 and will stay close to 4% further on.
More details are available in the new issue of the Bank of Russia’s information and analytical commentary Consumer Price Dynamics.
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