Cbank: Russians’ inflationary expectations rise to 8.5% in March

MOSCOW, Apr 4 (PRIME) – Households’ inflationary expectations for the next 12 months edged up to 8.5% in March from 8.4 in February, the central bank said on Wednesday in a research note.

“A direct estimate of households’ inflationary expectations for the next 12 months by inFOM calculated basing on answers to the question of the inflation level was virtually unchanged in March after a significant fall in the previous month (8.5% compared to 8.4% in February). Such dynamics corresponds to the trend of falling inflationary expectations,” the statement said.

The central bank also said that respondents’ inflationary expectations for the end of 2018 and for the next three years remained unchanged from previous months.

“Less than half of the polled expects inflation to overshoot 4% this year for a third consecutive month. At the same time the share of those expecting inflation to overshoot 4% within three years fell to an all-time low of 39%,” it said.

Estimates of perceived inflation also decreased. “Perceived inflation is below 10% for a third month in a row. The indicator hit a new low falling to 9.2% after 9.4% in February,” it said.

The number of those who felt “a very strong” price rise fell by three percentage points. “Such an improvement in assessment of perceived inflation was reflected in answers to the question about goods and services, which became the priciest last month. Respondents now mention meat and poultry, housing services, cheese, sausages, tobacco and cigarettes, tea, coffee, vegetable oil and passenger transport less than before. This means that people really see a slower price growth,” the central bank said.

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