Central Bank: Inflation stabilized near the target level

In may, the annual inflation rate has not changed compared to April, stabilized close to the target value. In the coming months, annual inflation will remain at around 4%, noted in the next issue of information-analytical review of the Bank of Russia “Dynamics of consumer prices”.

In may continued the decline in the annual growth rate of prices for nonfood goods, services and food, excluding fruits and vegetables. After an uncharacteristic monthly decrease of prices of fruit and vegetables in January-March (seasonally adjusted) in April and may there was their growth in connection with exhaustion of stocks of the previous harvest vegetables, and later planting season due to unfavorable weather conditions.

According to the Central Bank, in may, the growth rate of consumer prices with the exception of seasonality has decreased in comparison with April and amounted to 0.3%. This level corresponds to the trajectory of the baseline forecast of the Bank of Russia to reach 4% inflation at the end of 2017.

“In the coming months will continue to decline stable components of inflation, especially prices of non-food portion of the consumer basket. Weather conditions can have on inflation short-term impact. However, experts do not expect a significant deterioration in market vegetables and fruits: the likely reduction of yield of vegetables due to adverse weather conditions during the sowing period can be offset by an increase in production of greenhouse vegetables, as well as the expansion of its offer in connection with partial lifting of the embargo on the import of products from Turkey”, – said in the comments of the regulator.

Overall, the annual inflation will remain at around 4%. Monetary policy will aim at keeping inflation around the target level in the medium term, said the Central Bank.

Central Bank: Inflation stabilized near the target level 09.06.2017

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