Page 48 - RusRPTNov22

(three years ahead) inflation expectations of the population also increased, they returned to the average level of 2021.
The decrease in the index of consumer sentiment was due to the worsening of the respondents' expectations regarding the country's development prospects for the year and five years ahead. Improvement in assessments of the current situation continued in September, but slowed down significantly compared to previous months. The current state index remained close to the levels of the second half of 2021 - early 2022.
4.2.1 CPI dynamics
Inflation continued to fall in Russia in September, to 13.7% y/y, but at a much slower rate than in previous months. The recent period of strong disinflation is coming to an end and the central bank is likely to scale back the frequency of further interest rate cuts.
Consumer prices rose marginally by 0.05% m/m in September, which was the first monthly increase since May. The y/y rate fell from 14.3% to 13.7%.
The fall in inflation was driven mostly by a large decline in food inflation, from 15.8% y/y in August to 14.2% y/y. Fruit and vegetables prices declined sharply both m/m and y/y. Food inflation excluding fruit and vegetables fell due to broad-based falls in most categories, particularly grains and meats.
Non-food goods inflation eased at a much slower rate than in previous months, from 15.5% y/y to 14.9% y/y. In month-on-month terms, prices rose 0.15%
48 RUSSIA Country Report November 2022 www.intellinews.com