The Central Bank recorded some instructions for a decrease in inflation pressure in Russia, but this still does not mean the prospects for stabilizing the situation with rising prices, follows from the report of the monetary policy regulator.
“In June and the first half of July, the first signs of weakening inflationary pressure appeared, this is not enough to talk about the sustainable deceleration of inflation. In July, the inflationary expectations of the population continued
grow, “- is given in the document. Statement by the head of the Central Bank Elvira Nabiullina.
The current inflation indicators are still above 4 percent on which the Central Bank is oriented. In June, annual inflation was 6.5 percent, the rise in price of goods and services was accelerated. “In many sectors, the expansion of demand exceeds the possibility of increasing production and imports. The growth of inflation is accompanied by increased inflationary expectations, which creates the risks of secondary effects for inflation,” the situation in the Central Bank.
According to the basic forecast of the Bank of Russia, in the second half of 2021, inflation will begin to slowly slow down, including due to the monetary policy of the regulator. The forecast of this year is 5.7-6.2 percent, but the Central Bank, in July, the key rate increases, it expects that in the future such a deviation will be able to limit. “Taking into account the monetary policy pursued, annual inflation will decrease to 4.0-4.5 percent in 2022 and will be located near 4 percent in the future,” calculated in the regulator.
The decision to increase the key bet for one percentage on the background of high inflation Central Bank accepted on July 23. Now it is 6.5 percent per annum. The increase was the fourth in a row after more than two years of consistent decline – until March of this year, the rate was at a record low of 4.25 percent.