In December, inflation showed an increase when adjusted for seasonal variations. Most indicators of underlying price growth, such as core inflation, experienced a rise. This trend indicates that demand continues to exceed the economy's ability to expand its production of goods and services.
The high key rate is encouraging more savings and reducing excessive demand for loans. Consequently, it is expected that the growth in demand and prices will slow down. The Bank of Russia projects that annual inflation will return to 4% by 2026.
Further information can be found in the latest issue of the Bank of Russia’s information and analytical commentary titled "Consumer Price Dynamics."
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