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.