Russian weekly consumer prices edge higher in week before rate decision

(Reuters) -Russia recorded a slight rise in weekly consumer prices, data showed on Wednesday, a little over a week before the central bank is widely expected to keep interest rates on hold at its first meeting of the year.

The consumer price index rose 0.21% in the week to Jan. 30, the Rosstat federal statistics service said, up from a 0.14% rise a week earlier. So far this year, prices are up 0.74%.

Analysts and economists polled by Reuters expect the Bank of Russia to hold its key rate at 7.5% next week as inflation remains above the 4% target.

The central bank aims to return inflation to target by 2024. It has forecast inflation to fall to 5% to 7% this year.

Separately, the economy ministry said annual inflation had been running at 11.50%, almost unchanged from a week earlier.

Inflation in Russia has remained subdued in recent months due to weak consumer demand, which has been exacerbated by Russia’s military mobilisation campaign.

Annual inflation for 2022 came in at 11.9%. Economy Minister Maxim Reshetnikov said this month he saw inflation falling substantially by the end of the first quarter, with the second quarter figure below the 4% target.

(Reporting by Alexander Marrow and Darya Korsunskaya; Editing by Alex Richardson)