Inflation Review. Q4-2023

Inflation accelerated noticeably at the end of 2023, and its containment may become an economic policy priority in 2024.
Annual inflation increased from 2.0% YoY in September to 5.8% YoY in December 2023. A directive price reduction of October-November 2022 exited the annual rate calculation. However, a more important factor was the increase in pro-inflationary pressure in an environment of overheated economy and shortage of workers. Subsequently, the annualized quarterly increase in consumer prices (seasonally adjusted) rose to 8.6% QoQ in Q4-2023. Increased costs passed on to prices even under strict price controls, but on a limited scale, which led to the inflation overhang expansion to at least 5% in late 2023.