Talking Trends: inflationary pressures gradually mounting
According to survey data and flash indicators, the Russian economy continues to grow in Q2 on the back of expanding consumer and investment activity alongside high demand in the public sector.
Annual inflation eased to 2.3% in April but is on course to rise from May as the calculation excludes the low readings of the past year — when prices trended down or held steady after the spring spike. Current inflation stands at about 4% in annual terms. Its structure is changing, as prices for more volatile goods and services are growing at a slower pace while those for less volatile items tend to rise more quickly. At the same time, inflation expectations are invariably high, with inflation risks still prevailing over disinflationary risks.
More details are presented in Talking Trends, a Bank of Russia bulletin.