Skip to main content

Disinflation takes hold in CEE, Russia’s budget pressures

This week brought the clearest evidence yet that the disinflation process in Central Europe is underway as most economies experienced a broad-based easing of price pressures in December. This is likely to continue and we think that central banks will start cutting interest rates later this year. Elsewhere, Russia's finance ministry announced that the budget deficit amounted to a larger-than-expected 2.3% of GDP in 2022 and we expect falling energy revenues to put more pressure on the public finances this year. This will further erode Russia's macro stability and sanctions resilience.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access