The Central Bank has predicted a sharp slowdown in annual inflation to 7.5%

Moscow. December 11. The Bank of Russia is expecting a sharp slowdown in annual inflation in the first quarter of 2016.

“We expect a sharp deceleration of annual inflation to 7.5-8% in the first quarter of next year, and one of the reasons will be the base effect. According to our estimates, the process of adaptation to imposed foreign trade restrictions against Turkey will have an insignificant influence on inflation in General is between 0.2 and 0.4 percentage points in the coming months”, – said the head of the CBR Elvira Nabiullina.

It noted that inflation expectations in Russia remain at an elevated level, particularly November, is some increase in inflation expectations of ordinary citizens.

According to her, to the slowdown in inflation was sustainable, it is necessary to reduce inflationary expectations of the population and producers. “The idea of the future inflation rate along with the level of interest rates have a big impact on decision making in the economy”, – said Nabiullina

Earlier on Friday the Central Bank decided to keep key rate at 11%, citing the persistence of high inflationary expectations, with risks of further cooling of the economy.