Household inflation expectations decline to 13.7 percent in August

The median estimate of household inflation expectations for the next 12 months decreased to 13.7 percent in August from 14.7 percent in July, according to the Bank of Russia's 162nd survey wave conducted by inFOM.

Observed annual inflation also declined, falling 0.8 percentage points to 14.3 percent.

Among respondents with savings, one-year expected inflation fell to 12.0 percent from 13.0 percent, while for those without savings it dropped to 15.0 percent from 16.5 percent.

However, long-term five-year inflation expectations rose to 12.4 percent from 11.2 percent in July.

When evaluating recent price shifts, respondents most frequently pointed to strong price increases in meat and poultry at 45 percent, gasoline at 42 percent, and seafood at 33 percent.

The Consumer Sentiment Index improved to 93 points in August from 90 points in July, supported by a rise in the consumer expectations component to 96 points.

Propensity to save strengthened, with 52 percent of respondents considering it better to save spare money rather than make major purchases, up from 48 percent in July.

Preference for cash savings rose to 37 percent, overtaking bank deposits at 36 percent.

Meanwhile, 39 percent of respondents knew the central bank targets a specific inflation rate, though only 3 percent correctly named 4 percent.