Russia's weekly inflation accelerates to 0.2% ahead of expected rate hike
Oct 23 (Reuters) -Russia's weekly inflation accelerated to 0.2% in the week to Oct. 21 from 0.12% a week earlier, data from the Rosstat statistics service showed on Wednesday, just two days before the central bank is expected to hike interest rates to at least 20%.
Inflation was at 0.46% since the beginning of October and 6.27% since the beginning of the year, Rosstat data showed.
In September, the central bank admitted that year-to-date price growth would exceed its forecast range of 6.5-7.0% and may demand further tightening of monetary policy.
Bank of Russia analysts expect annual inflation to reach 7.7% at the end of 2024, well above the bank's 4% target and higher than the 7.4% inflation reading in 2023.
Most analysts polled by Reuters expect the Bank of Russia to hike its key interest rate to 20% from 19% on Oct. 25, due to a higher-than-expected budget deficit in 2024 and utilities tariff hikes coming next year.
The bank also closely follows the inflation expectations of Russian households, which jumped to 13.4% in October, the highest reading since December 2023.
Reporting by Darya Korsunskaya; Editing by Alexander Marrow and Hugh Lawson
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