In the first quarter of 2024, the Russian economy exceeded most growth forecasts, though it appears to have slowed slightly in April and May, according to preliminary data. Despite this growth, the supply of goods and services is not keeping pace with the rising aggregate demand driven by increasing incomes, lending, and public demand.
Consumer prices experienced a seasonally adjusted increase in April, returning to levels seen in January and February. To achieve a sustained reduction in inflation and meet target levels, maintaining tight monetary conditions over an extended period will be necessary.
These insights are detailed in "Talking Trends," a bulletin from the Bank of Russia.