The growth rate of consumer prices and inflation expectations remains high, according to the latest Regional Economy report. Economic activity increased during December 2024 and January 2025, though companies’ expectations about output have become more moderate. The accumulated effect of higher interest rates has led to a slowdown in lending.
Despite this, consumer demand continues to be strong. This situation encourages companies to expand the output of consumer goods, with specific regions focusing on different products: clothing in Central Russia, furniture in the Volga-Vyatka macroregion, pharmaceuticals in the North-West, dairy products in the South, and meat products in Siberia.
Unemployment is reported to stay at a record low. The new issue of the report “Regional Economy: Commentaries by Bank of Russia Main Branches” covers a special topic on labor market prospects.
Other topics included in the issue are producer prices and price expectations across various industries, as well as trends in construction materials and special machinery markets.
