Russia Inflation April 2021

Russia: Inflation eases to lowest level since January in April

Consumer prices increased 0.58% over the previous month in April, below the 0.66% increase logged in March. April’s result marked the softest rise in prices since October 2020.

Inflation fell to 5.5% in April, following March’s 5.8%. April’s reading marked the lowest inflation rate since January. Meanwhile, the trend pointed up mildly, with annual average inflation coming in at 4.4% in April (March: 4.2%). Core inflation came in at 5.5% in April from March’s 5.4% increase.

Commenting on the inflation outlook, Dmitry Dolgin, chief Russia economist at ING, notes:

“The April CPI reading and its composition suggest elevated CPI risks in the near term. We would not exclude some minor uptick in May, followed by CPI staying around 5.5% YoY until November, despite the favorable base effect. Only at the year-end the higher base effect should be strong enough to assure annual inflation falling to 4.5% YoY in December. At the same time, we acknowledge that given the risk profile those expectations look optimistic.”

Meanwhile, on monetary policy, Dmitry Dolgin, said:

“The pace and structure of the CPI growth, with higher contribution of non-food and services CPI, […] should keep the Bank of Russia concerned with the monetary component of inflation. We reiterate our call that the key rate, currently at 5.0%, has a 50-basis point upside this year, which may be realized in the next 2-3 board meetings.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest