MOSCOW, June 6. /TASS/. Proinflationary risks have decreased slightly, though they still prevail over disinflationary ones in the medium term, the Central Bank said in a press release following a meeting of the board of directors on the key rate.

"Proinflationary risks decreased slightly but still prevail over disinflationary ones in the medium term. The key proinflationary risks are associated with a longer upward deviation of the Russian economy from a balanced growth path and high inflation expectations, as well as with the deterioration in the terms of external trade," the regulator said.

A further decrease in the growth rate of the global economy and oil prices in case of escalating trade tensions may have proinflationary effects through the ruble exchange rate dynamics, the Bank of Russia noted.

Disinflationary risks involve a more significant slowdown in lending growth and domestic demand under the impact of tight monetary conditions. "If geopolitical tensions ease, external conditions may improve, which might have a disinflationary effect," according to the press release.

Inflation expectations of Russians remain elevated, which may impede a more sustainable slowdown in inflation, the Central Bank said.

"In general, inflation expectations remain elevated. This may impede a more sustainable slowdown in inflation," the regulator said.

As of June 2, 2025, annual inflation slowed to 9.8%, the Bank of Russia said. "High-frequency data in May showed a further decline in the current price growth, although with a significant contribution from volatile components," the press release reads.

The Bank of Russia has registered a gradual slowdown in domestic demand growth, with the upward deviation of the Russian economy from a balanced growth path narrowing.

"The upward deviation of the Russian economy from a balanced growth path is narrowing. High-frequency data, including those for 2025 Q2, demonstrate a gradual slowdown in domestic demand growth," the regulator said.

The situation in the labor market has not changed considerably since the April meeting, the press release said. Unemployment is at its record lows. However, according to surveys, the share of enterprises experiencing labor shortages continues to decline. Wage increases remain high and continue to outpace labor productivity growth.