Russia: Inflation falls again in November, hitting a new record low
December 7, 2017
In November, consumer prices rose 0.2% from the previous month, above the 0.1% month-on-month rise observed in October. According to the Federal State Statistics Service (Rosstat), the result reflected a broad-based increase across all components of the index.
Inflation in November moderated from 2.7% in October to 2.5%. The print is the lowest in the country’s modern history, and inflation is now further below the Central Bank of the Russian Federation’s target rate of 4.0%. Declining inflation is giving the Central Bank margin to loosen monetary policy. Annual average inflation declined from 4.2% in October to 3.9%, another historical low.
Russia Inflation Forecast
Panelists see inflation ending 2018 at 4.0%, which is unchanged from last month’s forecast. For 2019, participants expect inflation to end the year at 3.9%.