Cbank department: Inflation still on way toward 4% goal in 2017

MOSCOW, Jul 12 (PRIME) – Russian inflation will not overshoot the central bank’s 2017 target of 4% despite its June surge to 4.4% annually, the central bank research and forecast department said in a statement on Wednesday, adding that its opinion can differ from the official position of the ruler.

“In spite of a temporary acceleration in June, inflation remains on a trajectory leading to the goal of 4% at the end of 2017 thanks to a slower price growth at the start of the year,” the authority said.

Prices jumped in June as an abnormally cold summer pushed produce prices unusually high instead of cutting them seasonally.

The department expects insignificant inflation acceleration approximately in August but deceleration in October–December thanks to a shift in seasonality.

“This is why we see no serious risks of inflation missing the 4% goal in 2017 so far,” the department said.

The authority also said that inflation can top 4% in January–March 2018 due to a low base effect if the ruble is stable. This temporary inflation dynamics will not impede a later gradual deceleration.

End