Central Bank of Russia predicted rise in prices for products. Such a forecast regulator gave a report on monetary policy. The document is published on the website of the Central Bank.
As noted in the report, due to adverse weather conditions, it was necessary to move the harvest time. In the third quarter, the volume of agricultural production decreased by 5.6 percent relative to the average for the second quarter of 2021. According to the regulator’s forecast, poor crop can lead to a further increase in prices for products in the first half of 2022.
Inflation in October accelerated to 7.78 percent at the target rate of four percent. As noted by the head of the Central Bank of Elvira Nabiullina at the conference on October 22, an increase in products affected the growth of inflation, as well as the current situation in world markets. By the end of the year, the regulator awaits price increases at the level of 7.4-7.9 percent. The risks of further growth inflation, according to forecasts, will be maintained in 2022. To compensate for the enhancement of the intelligence factors, the Central Bank on October 22 raised the key rate to 7.5 percent.
Earlier in November, economists have already predicted a record price for products for five years. Analysts also related to the increase in the cost of food with poor harvest, the situation in global markets and the regime of non-working days in Russia. Economists predict the acceleration of prices to 8.02 percent. The spokesman for the President of Russia Dmitry Sadov also commented food inflation. His opinion coincided with the views of analysts: unfavorable international conjuncture accelerated the rise in food prices in Russia.