Cbank: Russians’ inflation expectations fall to 8.5% in March

MOSCOW, Apr 7 (PRIME) -- Russians’ inflationary expectations fell to 8.5% in March from 9.2%, but still remain high, the central bank’s forecasting department said in a report Thursday.

“The dynamics of inflationary expectations are mostly under the influence of a number of favorable factors, which will most likely remain for short-term,” the report said. It is early to speak about a stable trend of lower inflationary expectations, according to the document.

A significant reduction of the current account surplus raises the ruble rate’s dependence on foreign macroeconomic shocks and can finally affect inflation dynamics, the central bank also said.

The central bank also believes that volatility on the financial market may increase in the second half of the year.

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