Russia: Inflation plunges to lowest level since February in October
Inflation fell to 12.6% in October, following September’s 13.7%. October’s result marked the weakest inflation rate since February. Decelerating price growth for food products and non-food products more than offset rising inflation in the services sector.
The trend pointed up, with annual average inflation coming in at 13.2% in October (September: 12.8%). Meanwhile, core inflation fell to 16.2% in October, from September’s 17.1%.
Lastly, consumer prices rose 0.18% in October over the previous month, accelerating from the 0.05% rise recorded in September. October’s figure was the highest reading since April.
Commenting on the inflationary outlook, analysts at Goldman Sachs said:
“In line with the CBR’s forecast, we think that inflation will fall to 12.0% by year-end and further towards the 4.0% target in Q1 2023 due to based effects. However, we think it will rise thereafter close to 7.0% by end year 2023 and the CBR will hike rates from the middle of next year.”