Cbank still expects Russia’s inflation at 4–4.5% in 2022

MOSCOW, Jan 19 (PRIME) – Russia’s balance of risks is shifted towards the pro-inflationary factors, which could lead to a prolonged deviation of inflation from the central bank’s target of 4%, but the regulator still expects it to slow down to 4–4.5% in 2022, the authority said in a research note on Wednesday.

“Taking into account the growth of pro-inflationary expectations, the balance of inflation risks is significantly shifted to pro-inflation. It could lead to a significant and prolonged deviation of inflation above the target,” the research note read.

The central bank’s monetary policy is focused on restricting inflation risks and returning inflation to 4%. The regulator maintains its 2022 inflation forecast at 4–4.5%, and expects inflation to remain close to 4% in the future.

In 2021, Russia’s inflation rose to 8.39% from 4.9% in 2020.

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