(Reuters) – Russia recorded flat shopper costs after modest deflation the week earlier than, knowledge confirmed on Wednesday, forward of the central financial institution’s rate-setting assembly scheduled for June 10.

Weekly inflation spiked to 2.22% in early March, quickly after Russia began what it calls a “particular army operation” in Ukraine on Feb. 24, however has been slowing since, capped by a fast restoration within the rouble.

Within the week to Might 27, the buyer worth index (CPI) was unchanged after declining 0.02% within the earlier week for the primary time since August 2021, knowledge from statistics service Rosstat confirmed.

In annual phrases, inflation slowed to 17.35% from 17.51%, the financial system ministry mentioned, after knowledge confirmed shopper demand measured by retail gross sales slumped in April.

Inflation is slowing even after the central financial institution lowered its key rate of interest to 11% in Might and mentioned it noticed room for extra cuts this 12 months, because it tries to handle a shrinking financial system and excessive inflation.

Thus far this 12 months, shopper costs in Russia have risen 11.82%, Rosstat mentioned.

Costs for practically the whole lot, from greens and sugar to garments and smartphones, have risen sharply in current weeks as Russia encountered logistics disruptions and elevated volatility within the rouble.

Annual inflation has slowed to 17.51% as of Might 20 from 17.83% in April, which was its highest since January 2002. The central financial institution expects inflation to succeed in its 4% goal in 2024.

President Vladimir Putin mentioned final week that inflation would not exceed 15% this 12 months.