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Inflation slowdown below 4% in Russia in 2023 to be temporary, says Central Bank chief

It is noted that the forecast for the year overall is 5-7%

MOSCOW, December 16. /TASS/. The slowdown of annual inflation below 4% expected in Russia next spring will be temporary, Central Bank Governor Elvira Nabiullina told a press conference following the meeting of the regulator’s board of directors on the key rate, adding that inflation slowdown would not mean reaching the targeted level.

"As far as the decrease in annual inflation below 4% next year, probably in the spring, is regarded, it does not mean that inflation will go down below the target overall. Our forecast for the year overall is 5-7%. The level of annual inflation will decrease due to the base effect, whereas for us sustainable inflation components are important," she said, adding that the price pressure and pro-inflation risks might rise.

In November the annual growth rate of consumer prices amounted to 12% (after 12.6% in October). As of December 12, annual inflation increased to 12.7% considering the adjustment of utility tariffs rescheduled from July 2023. According to the Central Bank’s outlook, considering the current monetary policy annual inflation will fall to 5-7% in 2023, return to 4% in 2024 and will be close to 4% in the future.