The Central Bank forecasts inflation in the Russian Federation in 2021 at the level of 5.7-6.2%

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AK&M 23 July 2021 14:52

Inflation in Russia in 2021 will reach 5.7-6.2%. In 2022, inflation will be 4-4. 5% and in the future will be near 4%. This is stated in the message of the Bank of Russia following the meeting of the Board of Directors, which decided to raise the key rate by 100 basis points to 6.5% per annum.

Currently, inflation is higher than the forecast of the Bank of Russia. In June, the monthly seasonally smoothed growth rates of consumer prices slightly decreased compared to May, but remain high.

Annual inflation increased to 6.5% (after 6% in May) and remained at the same level on July 19. The indicators reflecting the most stable processes of price dynamics, according to the estimates of the Bank of Russia, are significantly higher than 4% in annual terms.

This is a reflection of the fact that the steady growth of domestic demand is outpacing the opportunities for expanding production in a wide range of industries. Against this background, it is easier for enterprises to transfer increased costs to prices, the regulator emphasizes.

Inflation expectations of the population continue to grow and have been near the maximum values for the last four years for more than six months. The price expectations of enterprises remain near multi-year highs.