The Central Bank anticipates a gradual increase in price pressure after a period of limited price growth

MOSCOW, May 17 (Reuters) – Price pressure in the Russian Federation is gradually increasing after a period of subdued price growth in the second half of 2022, the Russian Central Bank said on Wednesday.

“According to the forecast of the Bank of Russia, starting from May, when low values ​​​​of the monthly increments of the summer period of 2022 come out of the annual inflation calculation, the annual inflation rate will start to increase,” the Bank’s review of price dynamics says.

“In the baseline scenario, taking into account the monetary policy, annual inflation will be 4.5-6.5% in 2023, then return to 4% in 2024 and be close to 4% in the future,” the central bank said. .

The Central Bank’s review shows that there may be additional pro-inflationary effects with the tightening of sanction restrictions.

(Elena Fabrichnaya. Text by Ksenia Orlova)