Page 54 - RusRPTSept23

4.2.1 CPI dynamics
Annual inflation in Russia up to 4.66% in week ended August 14 from 4.43% in previous week. Earlier reports said that according to the Russian Central Bank’s projections, annual inflation in Russia would continue rising in coming months, whereas by the end of the year it is projected at 5-6.5%
Russia’s annual inflation will amount to 5% in July–September and to 5.0-6.5% in the whole of 2023, the central bank said in a report late on August 1.
In August, the median assessment of household inflation expectations over the annual horizon was 11.5% (+0.4 percentage points against July). Inflation expectations for five years ahead have not changed and, as in July, amounted to 9.5%. Annual inflation observed by the population amounted to 13.5% (-0.3 percentage points against July).
In August, the consumer sentiment index increased, remaining close to a five-year high. Both the current assessments and the expectations of survey participants regarding the country's economic prospects and personal financial situation have improved. The propensity of respondents to consume in August slightly increased.
The increase in price expectations occurred in all industries. The main reasons for the increase, according to enterprises participating in the monitoring of the Bank of Russia , were the weakening of the ruble and the accelerating growth of costs (including the rise in prices for fuels and lubricants). The average growth rate of selling prices, expected by enterprises in the next three months, amounted to 5.2% in annual terms.
4.2.2 PPI dynamics
Russian industrial producers raise prices by 1.4% in July. In the processing sector, prices hiked by 16.8% for table and kitchen glassware, glass stationery, interior decorations and the like glass products
RUSSIA Country Report September 2023 www.intellinews.com