Russia's annualized inflation was 2.8-2.9 percent by April 6, which corresponds to the Central Bank's expectations, its governor Elvira Nabiullina said on Friday
MOSCOW (Pakistan Point News / Sputnik - 10th April, 2020) Russia's annualized inflation was 2.8-2.9 percent by April 6, which corresponds to the Central Bank's expectations, its governor Elvira Nabiullina said on Friday.
"In March, annualized inflation accelerated to about 2.5 percent from 2.3 percent in February. Weekly inflation over the past three weeks has been significantly higher than typical price increases for this time of the year. Accordingly, the annualized inflation rate as of April 6 was already 2.8-2.9 percent. This is a faster return of annualized inflation to the target, and it meets our expectations of short-term effects from a weakening exchange rate and an increase in demand for some goods in connection with measures to combat the epidemic," Nabiullina said.
By mid-year, the balance of risks for inflation will shift towards disinflation factors, she added.
When making decisions on monetary policy, the Bank of Russia will proceed from a conservative oil prices forecast, Nabiullina said, adding that oil prices relatively stabilized amid OPEC+ talks, but still remain low.
"At the same time, due to large reserves, a steady recovery in oil prices will probably require considerable time, months, maybe even quarters. And when deciding on monetary policy, the Bank of Russia will traditionally proceed from a conservative forecast of oil prices and volumes of its exports," Nabiullina said.
The Bank of Russia is preparing a new macroeconomic forecast for a board meeting in late April, she said.
