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Price growth decelerates in February

20 March 2023
News

In February, annual inflation remained on a downward path. The seasonally adjusted monthly growth in prices for many goods and services slowed down after a surge in January. The growth of prices for fruit and vegetables, household appliances and electronic devices decelerated. However, prices for foreign and domestic tourism services grew at a faster pace.

The Bank of Russia forecasts that in the coming months, annual inflation will temporarily drop below 4% due to the high base effect of the last spring. This metric will increase in the second half of 2023 as the months with low growth in inflation of 2022 H2 will be removed from the calculation base. Given the monetary policy pursued by the Bank of Russia, annual inflation will come in at 5–7% in 2023, return to 4% in 2024, and stabilise close to 4% further on.

Read more in the recent issue of the Bank of Russia’s information and analytical commentary Consumer Price Dynamics.

Preview photo: Tricky_Shark / Shutterstock / Fotodom