Sustainability of trend toward decelerating annual inflation in Russia will be clear in several weeks - Reshetnikov

STRELNA. Jan 29 (Interfax) - Annual inflation in Russia has begun decelerating in the second half of January, though the sustainability of the trend will be clear in several weeks, Economic Development Minister Maxim Reshetnikov told reporters.

"In principle, you see last week's figures for year-on-year already; we have 7.28%-7.3% [annual inflation, according to the Economic Development Ministry's assessment as on January 22]. Let us wait to see the next several weeks, and it will be possible to draw conclusions," Reshetnikov said when answering whether it were possible to talk about a decrease in inflationary pressure in Russia amid the beginning of decelerating annual inflation.

Commenting on the question as to whether the Ministry of Economic Development maintains its forecast for 2.3% GDP growth in Russia in 2024, Reshetnikov said that the ministry is now assessing the forecast and will present it in accordance with the schedule (in April).

As reported, Rosstat showed that inflation in Russia from January 16 to January 22, 2024, was 0.07% after 0.13% from January 10 to January 15 and 0.26% from January 1 to January 9.

Data for 22 days of January this and last year show that annual inflation in Russia as of January 22 slowed to 7.37% from 7.44% on January 15 and 7.42% at the end of December, if calculated using weekly dynamics (the methodology used by the Central Bank). Inflation slowed to 7.28% (from 7.40% on January 15) when calculated from average daily data for all of January 2023 (the methodology used by the Ministry of Economic Development).

As reported, the Central Bank's forecast for inflation in Russia for 2024 is 4.0-4.5%. The Ministry of Economic Development, in its September forecast, expects inflation in 2024 to be 4.5%. The consensus forecast of economists surveyed by Interfax at the end of December for inflation in 2024 is 5.2%.