Consumer prices continue to soar
In June, the current inflation rate (seasonally adjusted) edged down while remaining higher than in the first quarter of 2024. Annual inflation accelerated to 8.6%. After a spike in May, the growth of prices for tourism and transport services slowed, whereas fruit and vegetable prices started to increase faster.
Inflation was primarily driven by high domestic demand, which has been persistently surpassing capacities to ramp up output. For inflation to decline steadily, tight monetary conditions should be maintained in the economy for an extended period.
More details are available in the new issue of the Bank of Russia’s information and analytical commentary Consumer Price Dynamics.
Preview photo: Mikhail Tereshchenko / TASS