Russian Central Bank holds inflation outlook at 5%-7% for 2023, expects return to 4% in 2024

MOSCOW. Dec 16 (Interfax) - The Central Bank of Russia (CBR) has kept its inflation outlook for 2023 at 5%-7%, while awaiting a return to the target of 4% in 2024, the regulator said in a press release following the results of the regulator's board of directors.

"Annual inflation has substantially declined since it peaked in the spring. It still mainly reflects the effects of the sharp surge in prices that occurred between February and April 2022. Presently, inflationary pressures are overall moderate. However, the current rate of price growth is up slightly, in part owing to steady components of inflation," according to the press release.

"The annual growth rate in consumer prices was 12% in November against 12.6% in October. Annual inflation is up to 12.7% according to data from December 12, accounting for the earlier indexation of utility rates formerly planned for July 2023," the CBR said.

"Despite the relatively low price growth rates in the previous months, inflation expectations of households and price expectations of businesses are high. Concurrently, price expectations of businesses have shown some growth since late summer. Analysts' medium-term inflation expectations are anchored close to 4%," according to the press release.