Page 82 - RusRPTJun24

New macroprudential measures to be introduced at the start of July are designed to rein in risks emerging from rapid growth in unsecured consumer credit.
In May 2024, estimated inflation expected by households in one year rose to 11.7% from 11.0% a month earlier, as shown by InFOM’s survey. The increase was due to the growing expectations of respondents without savings. Contrastingly, inflation expectations of respondents with savings remained at about the same level for the third month in a row. Households’ long-term inflation expectations for the next five years went up as well to 10.4%. The consumer sentiment index stayed fairly constant, holding close to its historical peak. Price expectations of businesses also generally remained unchanged at a high level.
4.2.2 PPI dynamics
Producer inflation in Russia edged lower to 18.4% in April of 2024 from 19.1% in the earlier month, the second consecutive slowdown to the slowest pace in seven months, but still well above its long-term average. Inflation remained at soaring levels for miners (44.5% vs 45.8% in March), as the energy-intensive nature of production made the sector especially sensitive to higher fuel prices amid the country’s refining capacity crisis, lifting costs for oil and natural gas producers (60.3% vs 62.1%) and metal ore miners (31.4% vs 33.3%). In the meantime, the inflation fell sharply for manufacturing (1.3% vs 14.6%) and wastewater disposal facilitators (0.6% vs 2.9%). In the meantime, the PPI fell for utility providers (-1.4% vs 0.8%).
82 RUSSIA Country Report June 2024 www.intellinews.com