Russia's inflation still not slowing; returning to target requires all of 2025, part of 2026 - Nabiullina

MOSCOW. Dec 4 (Interfax) - Inflation has not begun slowing in Russia to date, and returning to the 4% target will last throughout 2025 and part of 2026, Central Bank of Russia Governor Elvira Nabiullina said.

"We need to reduce inflation, and inflation has still not begun slowing. Inflation will unfortunately be higher this year than next year, though the braking path to our target will require all next year and even 2026," Nabiullina said at the VTB Russia Calling! forum.

The Central Bank forecasts inflation at 8%-8.5% in 2024, considering it currently to be close to or above the upper boundary, and at 4.5%-5% in 2025. The regulator projects inflation to return to the 4% target in the first half of 2026.

"If we do not respond now to increased inflation through monetary policy, once again, four years of increased inflation, and even, as they suggest, begin to lower the rate, then this would be perceived as the authorities admitting either an unwillingness or an inability to curb inflation. This could only lead to its acceleration," Nabiullina said.