Annual inflation rate in Russia continues upward trend in June
Date
7/11/2024 4:22:49 AM
(MENAFN) The latest data from the Federal State Statistics Service reveals that Russia's consumer inflation rate continued its upward trend in June, marking the sixth consecutive month of acceleration and reaching its highest level since February 2023. Year-on-year, inflation surged to 8.59 percent in June, up from 8.3 percent in May, reflecting persistent pressures across various sectors of the economy.
Food prices, a significant component of consumer spending, saw a notable increase with food inflation rising sharply to 9.81 percent last month. Meanwhile, inflation in services also climbed to 8.79 percent, indicating broad-based cost pressures affecting households and businesses alike.
Despite these annual increases, monthly inflation moderated slightly to 0.6 percent in June from 0.7 percent in May. This slowdown in monthly inflation was primarily driven by more stable prices in the food and services sectors during the period.
The Central Bank of Russia, in its latest policy meeting held in June, chose to keep its key interest rate unchanged at 16 percent for the fifth consecutive time. This decision underscores the central bank's cautious approach in managing inflation expectations and stabilizing the economy amidst external economic challenges and geopolitical uncertainties.
Looking ahead, the central bank has projected that annual inflation will gradually recede, aiming to return to the target level by 2025 and subsequently stabilize around 4 percent. This forward-looking strategy reflects efforts to balance economic growth with inflation control, ensuring sustainable economic stability over the medium term in Russia.
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