The Russian economy has shown continued growth in early 2025, driven by higher labor incomes that have bolstered consumer demand. This comes despite a slowdown in retail lending. While corporate lending has also decelerated, the sustainability of this trend will become clearer in the coming months.
At the start of the year, the monthly growth rate of consumer prices, adjusted for seasonal variations, decreased slightly but remained high. To bring inflation back to 4%, monetary conditions are expected to stay restrictive for an extended period. Additionally, fiscal policy normalization this year is anticipated to play a significant role in slowing down inflation.
Further information can be found in the latest issue of the macroeconomic bulletin “Talking Trends.”
