OREANDA-NEWS  The price expectations of Russian enterprises in August increased by 0.2 percent to 21.7 percent, according to a comment from the Bank of Russia.

The Central Bank clarified that they "increased slightly and remained above the average values for 2023." They also pointed out that positive expectations regarding demand have decreased both in the economy as a whole and in most industries. Current estimates for it have returned to the levels of July-September 2023.

The price expectations indicator is calculated monthly based on the responses of business leaders to the question of how prices for finished products or services will change in the next three months. Its changes reflect the direction and intensity of the ongoing processes. For example, an increase in the positive balance of responses indicates an increase in the expected price growth.

Earlier, the Central Bank hinted at a new increase in the key rate, which will be required to curb price growth. Given that annual inflation rose to 9.13 percent in July against June's 8.59 percent, "additional tightening of monetary conditions is required to reduce it," the regulator noted.

At the end of July, the Central Bank raised the key rate from 16 to 18 percent per annum, promising to assess the feasibility of further increasing it at the next meetings. Commenting on the decision, the head of the Central Bank, Elvira Nabiullina, stated that the country's economy is still in a state of significant overheating, and without a rate increase there would be risks of stagflation.