Talking Trends: persistent acceleration of inflation
5 September 2023
News
Aggregate demand in the economy continued to increase in July—August, while business confidence stayed high, as evidenced by high-frequency indicators and survey results.
Soaring domestic demand surpasses manufacturers’ capacities to meet it, which speeds up consumer price growth. During the summer months, seasonally adjusted price growth significantly exceeded 4% in annualised terms. The ruble weakening is an additional factor pushing up prices and inflation expectations.
The Bank of Russia’s monetary policy will help gradually moderate domestic demand and reduce inflationary pressure.
More details are available in the new issue of the macroeconomic bulletin Talking Trends.
Preview photo: Aslysun / Shutterstock / Fotodom