Annual inflation in Russia to be at list lowest in April 2023 - Central Bank

MOSCOW. Feb 20 (Interfax) - Annual inflation in Russia could fall below the 4% target in the spring of 2023 due to the base effect, external restrictions having caused consumer price growth to spike in March-April 2022, the Central Bank said in monetary policy report.

Inflation could be at its lowest in April 2023. In subsequent quarters, when low monthly values of the second half of 2022 come into play, the influence of pro-inflationary factors will gradually increase, while the effect of disinflationary factors will decrease, the Central Bank said.

Inflation in Q1 2023 may reach 3.6%, and GDP may fall by 2.4%, the Central Bank said in reference data. According to its forecast, inflation will be 5-7% in 2023, and it will be 4% in 2024 and 2025. GDP could grow 1% or fall 1% in 2023, while it might grow by 0.5-2.5% in 2024 and 1.5-2.5% in 2025.