Page 46 - RusRPTNov23

4.2.1 CPI dynamics
Annual inflation in Russia reached 6.3% as of October 9, accelerating further from 6% seen in September, according to the latest data by the Central Bank of Russia (CBR). Separate estimates by the Ministry of Economic Development showed that based on weekly data, annual inflation accelerated to 6.38% as of October 16. Annual inflation has thus effectively breached the 6%-7% full-year inflation guidance previously provided by the CBR in September. (chart)
4.2.2 PPI dynamics
Producer price inflation in Russia surged to 16.7% y/y in September of 2023, the highest since May 2022, and accelerated from 10.6% in the previous month amid a labour force crisis, plunging capacity for oil refiners, and weakening ruble.
The developments were also in line with the Bank of Russia’s signals of increasing inflationary pressure in the Russian economy. Inflation soared further for mining (41.2% vs 26.3% in August), while it picked up at a slower extent for manufacturing (10.9% vs 6.3%), and slowed for the provision of electricity, gas, and steam (7.1% vs 8.8%). On a monthly basis, producer prices rose by 4.7%, the sharpest increase since the supply crash from
46 RUSSIA Country Report November 2023 www.intellinews.com