In the months of August and September, consumer activity remained high across various regions, as reported by the Bank of Russia. Tourist traffic saw an increase, along with a rise in car demand. However, there was a noted decrease in household demand for loans.
The report highlights an expansion in economic activity across several sectors, attributed to a shift in domestic demand favoring local products. In Siberia, pharmaceutical output increased, while the Volga Region saw growth in machinery and ship production. The Urals experienced a boost in electrical equipment manufacturing. In Southern Russia, government support measures contributed to the expansion of dairy production. Additionally, new sales channels enabled wood processing companies in Central and North-Western Russia to enhance their output.
Consumer price growth accelerated on a monthly basis and significantly surpassed the Bank of Russia's target rate of close to 4% when annualized. While companies' price expectations rose, households' inflation expectations decreased but remained high.
Further details can be found in the October issue of "Regional Economy: Commentaries by Bank of Russia Main Branches." This edition covers special topics such as business activity, housing market and mortgages, and the 2024 harvest.