Chairman of the Central Bank (CB) Elvira Nabiullina believes that inflation in Russia will be long-term phenomenon. She reported this in an interview with the Financial Times newspaper.
According to her, in the late 1990s and 2000s, there was a very long period of high inflation in the country. With a low inflation, the population lived only short periods of time. “Inflation expectations were more restrained when the conditions were more stable, but they react to a pandemic, prices are growing,” said Nabiullina.
She noted that the Central Bank will continue to conduct a tough monetary policy, but such emergency measures, says Nabiullin, should not be long, “as it is important to expand the production for which investments are needed.”
According to the head of the regulator, the policy conducted by the Central Bank is aimed at combating inflation and to improve the position of Russians. “Inflation is a poverty tax. It is the poor suffer the most”, – concluded Nabiullin.
earlier in the Central Bank stated that in 2021, annual inflation in Russia, consonant with the basic scenario, will be 5.7-6.2 percent. At the same time, the Bank of Russia is counting on that, thanks to the monetary policy in 2022, inflation will decrease to 4-4.5 percent and will continue to be at 4 percent.