In July, seasonally adjusted current inflation was higher than in June, primarily due to the higher-than-usual indexation of utility tariffs. The growth in prices for petroleum products also accelerated, while fruit and vegetable prices decreased at a much slower pace than is typical for July. Annual inflation rose to 9.1%.
Overall, high inflation is driven by strong demand, which has so far outstripped the capacity to ramp up production. Thus, additional monetary tightening is required for inflation to start decelerating again.
More details are available in the Bank of Russia’s information and analytical commentary Consumer Price Dynamics.
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