Annual inflation is 2.5% in May, monthly price growth stays moderate
In May, annual inflation started to speed up, reaching 2.5%. Monthly price growth rates (seasonally adjusted) edged up slightly, mostly because of one-off factors.
The start of the holiday season caused a rise in prices for trips to the seaside, which accelerated the growth of prices for services. Contrastingly, food prices declined in May, with fruit and vegetable prices decreasing most notably. The warm weather helped cucumber and tomato farms reduce costs and prices. Leaving out such temporary factors, price pressure was increasing gradually, while remaining moderate.
As the low price growth rates recorded in summer—autumn 2022 are excluded from the calculation of annual inflation, its rate will continue to go up. The Bank of Russia forecasts that given the monetary policy pursued, annual inflation will equal 4.5–6.5% in 2023 and stay close to 4% in 2024 and 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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