Price growth slows, Russian consumers admit

In February 2018, households’ estimate of observed inflation was at its all-time low, according to an inFOM survey commissioned by the Bank of Russia.

Gradual growth is reported across the increasingly diverse range of products where consumers note slower price growth. According to the survey, respondents are less concerned over prices for petrol, fish and sea food products, fruit and vegetables, cheese and sausages, pharmaceuticals, chicken eggs, clothing, confectionery products, alcoholic beverages and consumer electronics.

The estimate of household inflation expectations for twelve months ahead was also at its all-time low. They are still high, however, with the proportion of those expecting inflation close to 4% still less than a third of all polled. This highlights potential for a further decline in inflation expectations.

Estimated changes in financial standing over the past year continued their positive trend in February; expectations for one year ahead also improved. From a consumer sentiment standpoint, respondents, albeit increasingly optimistic, are still fairly cautious when it comes to major purchases.