The weekly increase in consumer prices in Russia slowed marginally in the week ending March 27, according to data released by the national statistics service Rosstat on Wednesday. Authorities are attempting to reduce inflation, which reached about 12% in 2022.
In the beginning of this month, Russia’s central bank kept its benchmark interest rate at 7.5%, maintaining its hawkish approach as a deepening budget deficit and labor shortages presented continued inflationary concerns, and stating that rate rises were more probable than rate cuts this year.
On the week ending March 27, Rosstat reported that consumer prices gained 0.05%, compared to a rise of 0.10 % the previous week. From the beginning of the year, prices have increased 1.47 percent, a slower rate than the same period in 2022, according to Rosstat.
A 0.17 percent increase in March is considerably less than the 7.61% increase in March of the previous year.
Other figures released by the economy ministry indicated that annual inflation declined to 4.30 percent from 5.99 percent a week earlier.
After a decade of economic upheavals and rising costs that have dragged down living standards, Russian people frequently mention inflation as their primary concern, with many having no savings.
“We must assure a steady increase in domestic demand,” President Vladimir Putin told a government meeting on Wednesday. “In the current environment, domestic demand is becoming the primary engine of economic development.”
“I will also remark that the dynamics of domestic demand must be consistent with the Bank of Russia’s inflation objective. It is crucial not to let either an extreme acceleration or deceleration (of inflation) “Putin remarked.
In 2022, Russia’s annual inflation rate was 11.9%, over three times the official objective of 4%. The central bank expects inflation to be between 5% and 7% this year and 4% in 2024.