MOSCOW, March 17. /TASS/. Annual price growth slowed down to 11% in February from 11.8% in January, the Bank of Russia said in a press release following its board meeting on Friday.

"Annual price growth in February was down to 11% (from 11.8% in January). This was in part due to its volatile components. The weakening of the ruble since late 2022 has so far shown little in price movements. In the stable components of inflation, current price growth rates remain moderate," the regulator said.

Inflation expectations of households and price expectations of companies remain elevated, the Central Bank noted, adding that inflation expectations of households have declined significantly in March. Analysts’ medium-term inflation expectations are anchored close to 4%.

The Central Bank forecasts that annual inflation will temporarily fall below 4% in the coming months under the influence of last year’s high base effect. At the same time, sustained inflationary pressure will gradually increase from moderately low levels. "According to the baseline scenario, given the monetary policy stance, annual inflation will come in at 5-7% in 2023, return to 4% in 2024 and will be close to 4% further on," the press release reads.

The regulator kept the key rate at 7.5% per annum for the fourth time running at its board meeting on Thursday, noting the rate increase possibility should pro-inflation risks intensify. The next rate review meeting is scheduled for April 28, 2023.