The Central Bank called the June inflation an unpleasant surprise


Moscow. July 6. INTERFAX.RU – the Acceleration of inflation in Russia in June yoy to 4.4% was an unpleasant surprise, in July the inflation rate may remain at the same level or even decline to 4.3%, said the Director of the Department of the Central Bank of Russia Igor Dmitriev at a meeting of the Association of regional banks of Russia in the state Duma.

“In July, not the fact that the acceleration of inflation, just went potato harvest, one of these drivers may stay in the same place, and then to 0.1 (%if) to play in the direction of 4.3%. I’m so in July I’m not sure yet, but the shock in June is large, it is a negative surprise,” he said.

Dmitriev added that to assess the extent of tight monetary policy, it will be possible only after a year.

“How this inflationary process will converge, as we can continue to reduce (the key rate – if) and it (inflation – if) will be 4%. The current criterion of rigidity we can test in a year. I see no reason that inflation will be significantly below 4%. Although as a trend, Yes, (inflation – if) will decrease”, – said the head of the Department.

Source