In October, the cost of basic goods and services grew, the Bank of Russia reported on November 18. According to the regulator, tightening of monetary policy should continue.
The Bank of Russia reported an acceleration in price growth
Author: Ekaterina Strukova
“In October, most indicators of sustainable price growth increased compared to the previous month,” the Central Bank of the Russian Federation reported. At the same time, in general, monthly price growth slowed down compared to September, but solely due to a decrease in the cost of tourism and transport services.
With seasonal adjustment, price growth, according to the Central Bank, without volatile components amounted to 11.7% (10% in September). The core consumer price index excluding travel services reached 13.5% (9.6% in September).
The growth in demand again outpaced the ability to increase the output of goods and services, and inflationary pressure remained, the Central Bank of the Russian Federation stated.
According to the Bank of Russia, in October food inflation year on year amounted to 9%, and excluding fruit and vegetable products – 8.37%. The cost of fruits and vegetables increased by 13.51%. Also in October, compared to September, food prices increased by 1.23%, food without fruits and vegetables – by 1.2%. Separately, prices for fruits and vegetables increased by 1.44%.
Overall, consumer prices rose 0.75% in October and 0.48% in September.
The Central Bank of the Russian Federation recalled the goal of reducing annual inflation to 4%, and this requires a tough monetary policy. In 2024, inflation is expected to be 8-8.5%.
“Additional tightness of monetary conditions is required, capable of ensuring more restrained demand growth in order to resume the disinflation process, reduce inflation expectations and create conditions for a sustainable decline in inflation in 2025,” the bank stated.
On October 25, the Bank of Russia raised the key rate to a historical maximum of 21% and allowed its further growth.
Cover photo: dafydd_ap_w /
Source: rb.ru
