Russian Q1 inflation currently below Central Bank's Feb 7%-8% forecast - Zabotkin

MOSCOW. April 2 (Interfax) - The consumer price index in Russia should be below the Central Bank's 2025 inflation forecast of 7%-8% if March data confirm weekly trends, CBR Deputy Governor Alexei Zabotkin said.

"If the whole of March looks the same as the trends we observed week-on-week, then we can even expect overall inflation in the first quarter to be a little below the forecast published by the Bank of Russia on February 14 after the previous pivotal meeting. That means that the growth in prices is already slowing down compared to the very high growth rates of the fourth quarter," he said during a working group meeting at the State Duma.

He said that despite this, prices are still growing faster than the target level of 4%. "We need to keep monetary policy tight if we are to bring inflation back to a low level," he said.

The Central Bank's evaluations of the inflation situation are based principally on monthly, not weekly, data, he said.

"Weekly data are based on a limited basket which does not fully represent service sectors where the recent rate of price growth exceeds overall inflation. Weekly data should be treated as preliminary, operational figures," Zabotkin said.