FX.co ★ Russian Inflation Drops to 16-Month Low

Russia's annual inflation rate declined for the fifth consecutive month, reaching 8.1% down from the previous month's 8.8%, marking the lowest level since April 2024. This trend aligns with the Bank of Russia's forecast, which suggested that inflationary pressures from the first half of the year would not persist. Despite the decrease, the rate remains significantly above the central bank's target of 4%. Inflation rates decreased in the services sector (11.1% compared to 11.9% in July), food items (9.8% compared to 10.8%), and non-food goods (3.9% compared to 4.1%). Meanwhile, core inflation dropped to 8.0% from 8.5%. Notably, consumer prices fell by 0.4% from the previous month, marking the first monthly decline in three years.