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Russia’s Economy Returns to Growth as Inflation Rises to 6.3%

Russia’s economy expanded 1.3% year over year in the second quarter, matching market expectations and marking a sharp improvement from the 0.2% contraction recorded previously.

Inflation data showed a mixed picture. Annual consumer price inflation accelerated to 6.3% in August from 6.0%, in line with forecasts. On a monthly basis, however, consumer prices declined 0.1%, reversing the previous 0.5% increase.

The figures point to an improving growth backdrop alongside persistent annual inflation pressures.
Russia Holds Interest Rate at 14% as Central Bank Maintains Tight Policy

Russia’s central bank kept its benchmark interest rate unchanged at 14.00% in September, matching market expectations and the previous rate.

The decision leaves monetary policy restrictive as policymakers continue to balance inflation pressures against risks to economic growth.
Russia’s economy contracted in the first quarter, with GDP falling 0.2% year-over-year compared with 1.0% growth in the previous quarter.
Russia’s central bank lowered its policy interest rate at 14.50% in April, in line with expectations, from the previous level of 15.00%.
Russia’s industrial production grew by 2.3% year-over-year in March, exceeding expectations of 0.9% and rebounding from a 0.9% contraction in the previous period.
Russia’s producer prices rose by 2.0% month-over-month in March, accelerating from the previous 0.5% increase, indicating stronger short-term price pressures at the producer level. On an annual basis, however, PPI remained in negative territory at -1.8%, though this marks a significant improvement from the prior -5.2% decline, suggesting easing deflationary pressures.

Russia has already sold 22 tonnes of gold this year amid declining ruble, rising deficits | Kitco News

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Russia’s trade surplus narrowed to $5.35 billion in February, down from $6.60 billion in the previous period.
Russia’s economy showed modest improvement in the fourth quarter, with GDP growing 1.0% year-over-year, slightly above the previous reading of 0.8%.
Russia’s services sector slipped back into contraction territory in March, signaling a deterioration in business activity.

The S&P Global Services PMI fell to 49.5 from 51.3 in the previous month, dropping below the key 50 threshold that separates growth from contraction.
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