The Central Bank expects a further increase in annual inflation
"In April 2020, annual inflation was 3.1%, which is 0.6 p. p. higher than in March. The acceleration of the current price growth is temporary and is associated with increased demand for food and basic necessities in the context of the introduction of self-isolation in Russian regions, as well as with the weakening of the ruble in the first quarter. In the future, an increase in annual inflation is likely, including due to the release of the calculation of the low values of summer - autumn 2019", notes the Central Bank.
At the same time, according to the regulator, as the short-term pro-inflationary effects are exhausted, the prevailing factor will be the disinflationary impact of reduced domestic and external demand due to restrictive measures to combat the coronavirus epidemic.
"Taking into account the current monetary policy, annual inflation will be 3.8-4.8% by the end of 2020 and will be close to 4% in the future", points out the Central Bank.
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