In the first half of the second quarter, seasonally adjusted growth in consumer prices has continued to decline. This deceleration is attributed to a stronger ruble, which resulted from tight monetary policy measures that helped cool down demand, including for imports.
Despite this trend, consumer demand remains robust. The economy is growing moderately and is returning to a balanced pace of growth. However, there is a noted slowdown in growth primarily due to changes in demand for Russian exports.
To ensure inflation steadily declines to 4% and stabilizes at this level, it will be necessary to maintain tight monetary conditions over an extended period.
These insights are detailed further in “Talking Trends,” a bulletin from the Bank of Russia.
Preview photo: iSKYDANCER / Shutterstock / Fotodom
