Russia's Inflation Report

MOSCOW (Reuters) – Russia's inflation has hit 9.5% this year, with the consumer price index increasing by 0.33% in the week leading up to December 23, according to the statistical agency Rosstat reported on Wednesday.

This comes after the central bank's unexpected decision to keep its key interest rate at 21%. The regulator stated that recent tightening has facilitated conditions for reducing inflation towards its target of 4%.

The agency noted that seasonal price fluctuations for fruits and vegetables significantly contributed to the overall increase, with cucumber prices rising by 8.3% and tomato prices by 1.9% within one week.

Among other foods less sensitive to seasonality, the price of eggs rose by 1.7%, and frozen fish increased by 1.4%. The central bank had initially projected this year's inflation to be a maximum of 8.5%.

Central bank's monetary policy department head, Andrei Gangan, informed the Interfax news agency on December 24 that full-year inflation is expected to be between 9.6% and 9.8%.

Inflationary expectations among households for the upcoming year also reached 13.9% in December, the highest since the start of the year.

In an inflationary expectations survey, the central bank reported that respondents were particularly concerned about rising prices for milk, dairy products, eggs, meat, and fish. Additionally, they have started noticing price increases in home appliances and electronic devices.