Russia's Econ Ministry raises inflation forecast to 7.3% from 5.1% for 2024, to 4.5% from 4.0% for 2025

MOSCOW. Sept 9 (Interfax) - Russia's Economic Development Ministry has raised its forecast for inflation in the country in 2024 to 7.3% from the 5.1% it projected in April, a ministry spokesman told reporters.

The revised macroeconomic forecast for 2024-2027 has been submitted to the government, he said. The forecast, which was reviewed and generally approved by the budget commission, is usually considered along with the draft budget at meetings of the government in the second half of September.

The inflation forecast for 2025 was also raised, to 4.5% from 4.0%, while the forecasts for 2026 and 2027 were left unchanged at 4.0%, which is the target level.

"Inflation is higher than anticipated. The reasons are clear - we're seeing faster than expected growth of household incomes," the spokesman said, explaining the revision of the forecast.

The Federal Statistics Service has reported that inflation in Russia was 5.17% in the period from the start of 2024 to September 2.

The Central Bank raised its inflation forecast to 6.5-7% for this year and 4-4.5% for 2025 at the end of July, but still expects inflation to be on target at 4.0% in 2026 and 2027.

The consensus forecast of analysts polled by Interfax in early September projects that inflation will be 7.1% in 2024, rather than the 6.8% forecast a month earlier, and 4.8% in 2025.