The Central Bank of Russia expects inflation at a level of up to 7.4-7.9 percent for the results of 2021. This is reported on the website of the regulator after the next meeting of the Central Bank.
As noted by the central bank, prices are growing significantly faster than the July forecast, according to which the indicator should have achieved a level of 5.7-6.2 percent. By October 18, inflation accelerated to 7.8 percent. Such a high indicator of the Central Bank binds with the rise in prices for vegetables in August, but notes that other products have risen and the cost of which is not considered volatile. According to the regulator, the increase in prices in world markets causes enterprises to lay the increased costs in the cost of products for end users.
The Central Bank predicted a further deviation of inflation from the regulator’s goals, as the risks caused by interruptions in supply chains, the workforce deficiency, as well as the influence of the pandemic to the labor market. To keep the price increase, the Central Bank tightened a monetary policy – the interest rate was increased to 7.5 percent. A decrease in inflation to targets (4-4.5 percent) is expected in 2022.
In September, the head of the Central Bank Elvira Nabiullina stated that the tougher monetary policy of the regulator would affect price increases. She expressed the opinion that seven percent are peak value and a ceiling for possible inflation.
Your inflation forecasts have already worsened the Ministry of Economic Development. According to his expectations, the price increase by the end of 2021 will be 5.8 percent.