Russia Annual Inflation to Grow: Central Bank

The Bank of Russia expects further growth of annual inflation that amounted to 3.1% in April but the price hike acceleration is temporary, the regulator said on Monday, TASS reported.

“Annual inflation was 3.1% in April 2020, up 0.6 percentage point above March. Acceleration of the current price increase is temporary by nature and is associated with the higher demand for foods and essential goods in lockdown conditions introduced in Russian regions and with the ruble weakening occurred in the first quarter. Growth of annual inflation is possible to further on, in particular, because low values of spring-fall 2019 will not be included into calculations,” the Central Bank said.

“Considering the monetary policy pursued, annual inflation will be 3.8-4.8% as of 2020 year-end and will be close to 4% later on,” the Bank of Russia noted.