Annual inflation amounted to 8.3% in May — Bank of Russia

Inflation in Russia remained relatively high in May. According to the Central Bank, to reduce it further, tight monetary conditions (a high key rate) must be maintained for a longer time than predicted in April.

Annual inflation in May amounted to 8.3% (in April—7.84%), so the current price growth rate is significantly higher than last year.

In May, prices increased by 0.74% compared to April.

“The current rise in consumer prices accelerated significantly last month. Inflation was significantly affected by the rise in prices for tourism services and passenger transport, characterized by increased volatility. But the stable components of inflation also accelerated compared to April, exceeding the rates of the fourth quarter of last year in some indicators,” commented the press service of the Bank of Russia.

Experts point out that the main pro-inflationary factor is high domestic demand, which continues to outstrip the possibilities for expanding production. Accordingly, the regulator’s policy will continue to limit demand and its pro-inflationary consequences.

Author: Elina Akhmetova