Inflation Still on Descending Path
OREANDA-NEWS. In the second part of June and in July, the inflation dynamics remained within the Bank of Russia baseline scenario, and the prospects for positive GDP quarter growth in 2016 H2 improved, the 8th issue of Bulletin Talking Trends developed by the Bank of Russia Research and Forecasting Department states.
Inflation rates remain on the descending path which can be attributed to the current monetary policy as well. However, risks of exceeding inflation target of 4% in 2017 still exist due to a possible return to the consumption-oriented behavior under cessation of decline in inflation expectations, and also taking into account the uncertainty with concrete budget parameters.
According to Bulletin assessments, the economic activity slightly grew in Q2 against sporadic dynamics in industries and sectors which reflects the ongoing adjustment of the economy to low oil prices. Researchers expect a slow growth of economy in the months to come provided there are no new external shocks.
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