Russian Minister of Economic Development: Inflation will remain high in 2024

Russian Economic Development Minister Maksim Reshetnikov stated that inflation in his country will remain at high levels in 2024.

In his speech at the Russian Federation Council, Reshetnikov stated that annual inflation in 2023 will be 7.5 percent and next year’s average annual inflation rate will be 7.2 percent.

Reşetnikov stated that they expect inflation to decline to 4.5 percent annually in December 2024, but that inflation will remain at “significant levels” over the next year.

THE DECREASE IN THE VALUE OF THE RUBLE INCREASES INFLATION

The Central Bank of Russia increased the interest rate from 8.5 percent to 12 percent on August 15 and to 13 percent on September 15 due to the danger of high inflation, which increased with the depreciation of the ruble.

Central Bank President Elvira Nabiullina had said they would keep interest rates at high levels for a long time until they were convinced that the slowdown in inflation was sustainable.

INFLATION REDUCES PURCHASING POWER

High inflation reduces the purchasing power of the Russian people. Prices of food and basic needs increased due to inflation. This situation can lead to economic stagnation by reducing the purchasing power of the population. (AA)