CBR: Russians have more confidence in the ruble, inflation expectations of citizens decreased

MOSCOW, November 6. Inflation expectations of citizens for the coming year fell in October 2015 after growth in summer and early autumn. This is evidenced by data survey, conducted on behalf of the Bank of Russia, is spoken in the message of the CBR.

“Estimated LCSD, in October 2015, inflation expectations for the next 12 months decreased after rising in June-September of the current year… the Russians are a little less likely to expect depreciation of the ruble in the coming year, at the same time increased the number of those who considers that to store savings are now better than in rubles”, – stated in the message.

In particular, according to the survey, increased the number of people who believe that next month prices will grow only slightly, and those who believe that next year prices will rise more slowly than now. In addition, in October, people are less likely to fear that in the near future they can lower or reduce wages.

In General, the expectations of Russians concerning the development of the economy become more positive, notes the regulator. So, fewer people believe that in Russia in the coming year will decrease the standard of living of the population and the level of production or increase the unemployment rate and the level of corruption. A little increase in the number of respondents who believe that the next 12 months will be for economy a good time.

The only exception is the attitude of respondents to higher prices over the past month – increased slightly the proportion of people believing that prices have grown very strongly, especially for food, furniture, clothing and shoes. With noticeably less Russians in October drew attention to the growth of prices for sugar and salt, housing and communal services and gasoline, it follows from the results of the survey.

In total the survey was attended by 2 thousand adult respondents from 105 localities in 55 subjects of the Russian Federation.

The stability of the ruble

Earlier, the Deputy Minister of Finance Maxim Oreshkin reported that inflation in Russia by the end of 2015 will amount to 12.4%. He also stated that the stability of the real ruble exchange rate to maintain fiscal policy on the creation of domestic savings, the Central Bank of such levers do not.

You need to understand that speaking about the ruble exchange rate need not apply to the Central Bank. The Central Bank real exchange rate of the ruble even with all its desire to control can’t. The only way to control the real exchange rate is a greater volume of savings in the budget sector, this surplus Reserve Fund and the purchase of foreign currency on a budget. Only in this case it is possible to ensure the stability of the real ruble exchange rate

Maxim Oreshkin

About the ruble exchange rate

The Russian ruble after the start of the free floating exchange rate regime in November last year, has experienced several waves of devaluation, lost for the year about 60% of the dollar and the Euro. The Central Bank managed to halt the devaluation through an emergency increase the key rate, as well as through dialogue with exporters for the sale of export revenue and the Treasury on the currency market.