(MENAFN) Russia’s consumer price inflation rate continued its upward trend in June, increasing for the sixth consecutive month and reaching its highest level since February 2023, according to the latest data from the Russian Federal State Statistics Service. On a year-on-year basis, inflation rose sharply to 8.59% in June from 8.3% in May, reflecting continuing pressures across various sectors of the economy.
Food prices, a key component of consumer spending, saw a notable increase last month, with food inflation surging to 9.81%, while services sector inflation also rose to 8.79%, indicating widespread cost pressures are affecting both households and businesses.
Despite this annual increase, monthly inflation rate declined slightly to 0.6% in June from 0.7% in May. This decline in monthly inflation rate is mainly due to the stabilization of food and service sector prices during the period.
The Central Bank of Russia decided to keep its key interest rate unchanged at 16% for the fifth consecutive time at its latest policy meeting in June. The decision underscores the central bank’s cautious approach to managing inflation expectations and stabilizing the economy amid external economic challenges and geopolitical uncertainties.
Going forward, the Central Bank expects annual inflation to gradually decline, returning to its target level by 2025 and stabilizing at around 4% thereafter. This forward-looking strategy reflects an effort to balance economic growth and keeping inflation in check, ensuring sustained economic stability for Russia in the medium term.
MENAFN11072024000045015839ID1108430638
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, please contact the provider above.
