Cbank: Russia’s inflationary expectations fall to 11% in April

MOSCOW, May 2 (PRIME) -- Russia’s inflationary expectations for the next 12 months continued to fall and contracted to a historic low of 11% in April from 11.2% in March, the central bank said in a report on Tuesday citing data of a poll held by the Infom agency.

The trend started in early 2016, the regulator said.

The estimates of banks also showed lower inflationary expectations. The estimates on the basis of normal distribution and equally probable distribution showed expectations of inflation at 3.7% and 3.6%, respectively, down from 4% on both factors in March.

The number of respondents that expect inflation to overshoot 4% in 2017 significantly fell to a historic low of 55% in April.

“But direct estimates of inflationary expectations still significantly exceed a mid-term model of the Bank of Russia. Pro-inflationary risks connected with them are one of the key factors supporting a the moderately tough monetary policy,” the authority said.

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