Russians’ inflation expectations decline

In April, Russians’ inflation expectations for the year ahead dropped to 7.8% for the first time vs. 8.5% a month before. Inflation observed during the last 12 months also continued to decline reaching 8.3% in April vs. 9.2% in March. This is evidenced by the data from an inFOM survey commissioned by the Bank of Russia.

As compared to March, the share of respondents who noticed price growth increased in April for nearly all categories of goods and services included in the survey. The most favourable dynamics were observed for petrol and utilities, prices of which concerned the public in the previous months. Also, fewer respondents mentioned growth in prices of fish and seafoods, milk, pharmaceuticals, and children’s products.

Therefore, more and more Russians note the slowdown of price growth and expect inflation to remain at the low level in the future.

However, it should be mentioned that the survey took place from 2 to 9 April, i.e. before the ruble exchange rate volatility on the back of tightening sanctions. These events could result in a temporary surge of inflation expectations.