Central bank department says expects short-term inflation surge

MOSCOW, Jun 9 (PRIME) – Russia’s annual inflation can temporarily accelerate soon from 3% in May, the research department of the central bank said in a report on Tuesday.

The disinflation risks have started to prevail over pro-inflation risks in May "in spite of possible temporary acceleration of annual inflation in the months to come from the current level due to low price growth in the second half of 2019," the authority said, adding that its position may not correspond with the official position of the central bank.

The influence of short-term proinflationary factors linked with the weakening of the ruble and a temporary surge in demand, has faded as the ruble rose after March's losses, while people's earnings and demand have started to fall, the analysts said.

Inflation will likely stabilize at 4% in 2021 due to budget incentives and an expansionist monetary policy.

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