18.07.2016, 08:30
Bank of Russia Expects Annual Disinflation in July
OREANDA-NEWS. Accelerating inflation in June matches the baseline Bank of Russia forecast which predicts an inflation drop to 5-6% at year-end 2016, the 7th issue of Bank of Russia information analytical commentary Consumer Prices Dynamics says.
In July, the Bank of Russia expects annual disinflation due to a lower than last year indexation of utility charges (by 4% against 8.7% last year). Optimistic crop forecasting and moderate consumer sentiments also add to the decline in inflation.
Besides, a tiny contribution to service price deceleration might result from the resumption of cooperation with Turkey in tourism.
However, a slight acceleration of seasonally adjusted monthly growth of prices in June is indicative of the existence of inflation risks which need to be taken into consideration while conducting monetary policy.
In July, the Bank of Russia expects annual disinflation due to a lower than last year indexation of utility charges (by 4% against 8.7% last year). Optimistic crop forecasting and moderate consumer sentiments also add to the decline in inflation.
Besides, a tiny contribution to service price deceleration might result from the resumption of cooperation with Turkey in tourism.
However, a slight acceleration of seasonally adjusted monthly growth of prices in June is indicative of the existence of inflation risks which need to be taken into consideration while conducting monetary policy.
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