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Annual inflation in Russia rises to 5.19% on August 29-September 4

Consumer prices increased by 0.11%

MOSCOW, September 6. /TASS/. Annual inflation in Russia from August 29 to September 4 accelerated to 5.19% against 5.03% a week earlier, the Ministry of Economic Development said on Wednesday.

"In the week of August 29 to September 4, 2023, consumer prices increased by 0.11%. Inflation was 5.19% year-on-year. Price growth in the food category climbed (0.12%), while deflation was restrained by fruit and vegetable goods (1.3%) and a continuous rise in prices for other food products (0.24%)ю Non-food costs increased by 0.41%, mainly to sustained price increases in electrical and domestic appliances, as well as an increase in the rate of price growth in cars and fuel. Prices in the service sector continued to dip (0.28%), despite continuous decreases in the cost of domestic plane tickets (4.94%)," the statement said.

The Bank of Russia reported earlier that GDP growth in Russia by the end of the year can be within the upper bound of the forecast at 1.5-2.5%. "We will improve the forecast. According to current data, growth for this year is approaching the upper limit of the forecast," Deputy Chairman of the Bank of Russia Alexey Zabotkin said.

At the same time, Zabotkin noted that annual inflation in Russia is approaching the high limit of the Bank of Russia's predicted range of 5-6.5%. "Considering the July data and the live data for August, inflation is moving closer to the upper limit of the range that was published following the results of the July meeting,"he said.

The growing volume of imports, he noted, continues to influence the ruble exchange rate. "At the moment, the rate is significantly affected by the dynamics of imports, the demand for which is supported by the expansion of lending and domestic demand," Zabotkin explained.

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