Annual inflation in Russia has slowed to its lowest level in the last few years. This conclusion follows from the weekly report of the Ministry of Economic Development published on Wednesday, March 29.

As calculated in the department, over the past 12 months, consumer prices for goods and services in the country have grown by an average of 4.3%. The achieved level of annual inflation was the lowest since November 2020.

Food in Russia for the year rose in price by an average of 3.31%. The cost of onions (by 25.15%), cucumbers (by 12.81%) and dry milk mixtures (by 11.45%) increased the most. At the same time, a number of products, on the contrary, have seriously fallen in price. We are talking, for example, about cabbage (prices decreased by 71.47%), potatoes (-35.94%), carrots (-27.59%), buckwheat (-26.28%) and sugar (-21.6%).

The cost of non-food products increased by an average of 1.5%. The most noticeable rise in price of cars: Russian - by 4.54%, foreign - by 7.15%. Meanwhile, for example, medicines rose in price by only 2.16%, and building materials and gasoline fell by 7.4 and 0.01%, respectively.

The level of annual inflation in Russia has been continuously declining for the seventh week in a row and has already come close to the target mark of the Central Bank (4%). Moreover, in the near future, the value may fall even below the target of the Central Bank, as previously stated by President Vladimir Putin.

"Domestic demand has entered a trajectory of sustainable long-term growth. It is based on the stability of our labor market, an increase in salaries and incomes of citizens, as well as a decrease in inflation. It is expected that by the end of March inflation will be less than 4%. For comparison, this will be lower than in the eurozone countries, which endlessly wait for the collapse of the Russian economy and are trying to convince themselves of this, "the head of state said on March 16 at the rspp congress.

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The Central Bank also does not exclude that in the foreseeable future, annual inflation will temporarily fall below 4%. According to experts, the growth rate of consumer prices in the country is slowing down under the influence of the high base of last year.

"In March 2022, prices for the month jumped sharply, and, accordingly, a high base for the current calculation was formed. That is, by the end of March 2023, we can expect a significant reduction in inflation. Then it is likely to grow slightly from May, since the basis for the calculation will already be lower than it is now, "explained Evgeny Kalyanov, an expert on the stock market at BCS World of Investments, to RT.

Recall that in 2022, inflation in Russia accelerated after the introduction of Western sanctions. If in February the growth of consumer prices in annual terms was 9.15%, then in March the value rose to 16.69%, and in April it reached 17.83% - the highest level in the last 20 years. The reason was the emotional reaction of the financial market and ordinary citizens to the actions of the West.

Due to a number of economic restrictions, the ruble in early spring fell in a record price against other currencies, and Russians began to massively buy up products and goods. All this together provoked a rush jump in prices.

However, in May, against the background of anti-crisis measures of the authorities, easing consumer panic and stabilizing the situation in the foreign exchange market, inflation fell to 17.1%. In the future, price growth continued to slow down and by the end of 2022 amounted to 11.94%.

"Today, additional pressure on inflation is exerted by a relatively stable ruble. In addition, the authorities control the prices of socially significant and basic goods for Russians, and the cost of a number of vegetables is even decreasing. Nevertheless, starting from May, inflation may indeed accelerate somewhat again, "Alexander Abramov, head of the laboratory for the analysis of institutes and financial markets of the Institute for Applied Economic Research of the RANEPA, told RT.

According to the calculations of the Central Bank, by the end of 2023, inflation will be 5-7%. However, already in 2024, the value should finally return to the target 4% and will continue to be near this mark, the regulator's forecast says.

"If the decline in inflation is long-term, the Central Bank will again begin to lower the key rate, as a result of which loans will become more affordable for Russians and business. Companies in this case will be able to invest more money in the development of their enterprises and create more jobs. For the population, in turn, the slowdown in inflation means an increase in real disposable incomes," Alexander Abramov concluded.