Moscow: As of April 10, according to data from the central bank, annualised inflation in Russia had decreased to a rate of 3.15%.

The regulator stated that this occurred "primarily as a result of the effect of the high statistical base of the spring of 2022," when prices soared amidst the initial rounds of Western sanctions and tensions surrounding the conflict with Ukraine.

The indicator dropped significantly from 10.99% in February to 3.51% in March before continuing to decline. 2020 marked the most recent occasion that Russia's consumer price index dropped below 4%.

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Since 2023's start, the country's prices have increased 1.67% overall. According to the regulator, the rate of increase in the cost of goods has slowed significantly while the rate of increase in the cost of services has barely changed.

However, the Bank of Russia issued a warning that, as a result of the low monthly growth rates of the second half of 2022, against which the indicator is calculated, inflation may pick up speed in the ensuing months after the current decline.

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"There were high values -- in February, March, and April of last year -- and when these record high values are factored into the calculation, our annual inflation rate quickly slows down; starting in May, the price growth rate was very low and, in some months, even negative.

As a result, when these months are factored into the equation, the annual inflation rate will increase, according to Aleksey Zabotkin, deputy chairman of the central bank.

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According to analysts, the annual inflation rate will be between 5 and 7% by year's end under the current monetary policy, but it will likely drop back to the desired 4% level by 2024.