The annual inflation rate in Russia will reach the target of 4 percent by the end of 2018 due to a number of short- and long-term factors, a bulletin by the Research and Forecasting Department of the Central Bank of Russia revealed.
MOSCOW (Pakistan Point News / Sputnik - 06th December, 2018) The annual inflation rate in Russia will reach the target of 4 percent by the end of 2018 due to a number of short- and long-term factors, a bulletin by the Research and Forecasting Department of the Central Bank of Russia revealed."Inflation will reach 4 percent by the end of the year under the influence of a number of one-off as well as sustainable factors. Due to temporary factors, inflation will exceed 5 percent in 2019 before returning to 4 percent in 2020," the bulletin said.
The opinion of the department may not coincide with the official position of the Bank of Russia.
In September, the Bank of Russia raised its inflation forecast to 3.8-4.2 percent by the end of 2018, noting that it took into account decisions made on the key rate as well as the suspension of foreign Currency purchases within budget regulations.
One-off factors included accelerated growth in food prices compared to the extremely low level of last year, the impact of ruble depreciation on prices and the rapid rise in prices by some producers in anticipation of an increase in the base value added tax (VAT) rate up to 20 percent. Sustainable factors included an increase in the growth rate of the most stable components of the consumer price index compared to previous year, which are weakly affected by temporary factors.
