Price growth declines in most Russian regions in April
Prices went down month on month in four Russian regions but were growing more slowly than in March in 59 regions.
The growth rate of services and food prices decreased but remained high. The number of regions reporting lower non-food prices doubled to 39 vs March. In other regions, the said prices were rising, albeit more slowly than in March.
Annual inflation in Russia was down to 10.2% and already demonstrated a downward trend in 48 regions. However, inflation remained substantially above 4% countrywide. This is due to the fact that output in most industries remained insufficient to fully meet demand for goods and services.
To ensure a steady decline in inflation, demand in the economy should increase at a more moderate pace and high loan and deposit rates should be maintained for a long period. The Bank of Russia will continue lowering inflation. According to our forecast, monthly price growth will decrease to 4% in annualised terms already at the end of 2025 and annual inflation will return to the target in 2026.
More details on inflation in each Russian region are available in the information and analytical materials published on the Bank of Russia website.