OREANDA-NEWS The Central Bank has predicted a slowdown in consumer price growth in Russia to 4-4.5 percent in 2025. This is reported in the press release of the regulator following the results of the next meeting of the board of directors.

The Central Bank expects that, given the current tight monetary policy (PREP), annual inflation in the Russian Federation will gradually slow down over the next few years. After a decrease to 4-4.5 percent in 2025, the growth rate of consumer prices in the country, according to the regulator's assessment, will be near the target value of 4 percent in 2026.

As for 2024, the Central Bank expects that according to its results, inflation in Russia will exceed the July forecast range of 6.5-7 percent. The growth rate of domestic demand, as explained in the regulator, is still significantly ahead of the dynamics of the supply of goods and services in the country. Against this background, the Central Bank stated the need to continue to tighten the PREP in the medium term.

Following the results of the September meeting, the board of directors of the Russian regulator decided to raise the key rate by 100 basis points — from 18 to 19 percent per annum. The Central Bank cited the continuing high inflationary pressure as the main reason for such a measure. Against this background, the management of the regulator did not rule out a new increase in the key rate following the results of the next meeting, which will be held on October 25, 2024.