The Central Bank called shock level of inflation in Russia in June


MOSCOW, July 6. /TASS/. Data on inflation in Russia in June was an unpleasant surprise, said the Director of the Department of monetary policy of the Central Bank Igor Dmitriev.

“In July, not the fact that the acceleration of inflation. Just now and potatoes went to the harvest. One of these main drivers. Unable to stay there, and even the tenth to win back to 4.3%. I July not sure yet. But the shock in June big is the negative surprise of 4.4%,” – said Dmitriev.

He also said that the regulator had expected growth of annual inflation in June due to the increased cost of fruits and vegetables, but the actual growth was above his expectations.

“We expect growth of inflation in annual terms at the expense of fruits. It just happened now a little faster than we expected. So now we have the entire trajectory of revise, forecast count,” – said Dmitriev.

The Director of the Department did not exclude that inflation in Russia in July may slow down to 4.3% due to harvest, including potatoes.

On the other hand, the effect of a stronger rouble and a good harvest last year, inflation is close to exhaustion. Therefore, the Central Bank sees no justification for reducing the annual inflation significantly below the target of 4%. “Underlying (inflation) slowing down in General. Here’s how the inflationary process will converge, unfortunately, the current criterion of rigidity (monetary policy – a comment. ed.), we will be able to check in a year. I see no reason that inflation will be significantly below 4 percent”, – he said.

According to Rosstat, inflation in Russia in June 2017 was 0.6% after 0.4% in may. In annual terms, consumer price growth was at the level of 4.4%.

Source