OREANDA-NEWS. April 2016 saw inflation stabilising, while the economy approached the starting point of recovery growth. In the next few months, barring external shocks, the Russian economy looks set to hit a slow growth path, according to ‘Talking Trends’ No.6, the BoR Research and Forecasting Department-prepared bulletin.

According to the authors, the structural shifts in the economy are bringing closer the starting point of recovery growth. Immediately available monthly statistics show that the current GDP dynamics are helped by the industries centred on domestic production and consumption. In such a way, the service sector is in a more solid position thanks to tourism-related industries including those targeting foreign tourists.

Inflation shows fairly good performance. The recovery of oil prices, together with a more stable ruble, helps slow down the growth of consumer prices. Food inflation is checked by the drop in meat prices, which has continued for 12 months. ’Consumer inflation is gradually settling down on the path towards the annual level of 6.5% and 4% for 2017… ‘To deliver on the inflation target, a further easing of inflationary pressure will be needed, as well as reduction of inflation expectations’, the analysts note.

The bulletin format was updated to meet the interests of a wider audience, based on readers’ feedback on its previous releases.