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20 Apr, 2023 14:05

Russian inflation drops below 3%

The figure is lower than the government’s target for this year
Russian inflation drops below 3%

Annualized inflation in Russia has continued to slow, dropping to a rate of 2.82% for the week of April 11-17, according to data from the Ministry of Economic Development.

The figure for the previous week reported by the central bank stood at 3.15% year-on-year.

The ministry attributed the inflation drop to a slower growth rate in the costs of services, as well as cheaper airfares for domestic flights.

The food sector saw a 0.08% price increase caused mainly by more expensive fruit and vegetables. Non-food items showed zero inflation for the second week in a row, according to ministry data.

The indicator continued to fall after a sharp drop to 3.51% in March from 10.99% in February. According to business daily RBK, the rapid slowdown in annual inflation figures for the past few weeks can be explained by the fact that March 2022 saw the biggest price jump in 20 years. That surge was triggered by the start of Russia’s military operation in Ukraine and the rollout of Western sanctions.

The consumer price index jumped by 7.6% at the time, and over the course of the year the increase was reflected in the annual inflation rate.

The Ministry of Economic Development expects the average inflation rate to stay at around 5% this year, before dropping to 4% over the next two years.

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