Central banker: Current inflation dynamics higher than expected

ST. PETERSBURG, Jul 6 (PRIME) -- Russia’s inflation are higher than the baseline expected by the central bank in June, but it does not mean that the 2023 inflation forecast of 4.5–6.5% will be revised, Central Bank Deputy Chairman Alexei Zabotkin told reporters on Thursday on the sidelines of the regulator’s Financial Congress.

“The current pricing dynamics is going slightly above what we saw as the baseline trajectory discussed at the June meeting (of the central bank’s board of directors). But that doesn’t mean revision of the forecast range even though dynamics within this range are more pro-inflationary,” he said.

“Pro-inflationary factors have strengthened since our last key rate meeting on June 9,” he said.

Zabotkin also said that Russia’s real gross domestic product may get close to 2021 in 2023.

“The April forecast (for Russia’s GDP in 2023) stands at 0.5–2%. As for the other factors, the forecast will be adjusted following the July 21 meeting. Dynamics are not emerging close to the upper threshold (of the range) but rather in its upper half,” he said.

In 2022, Russia’s GDP fell by 2.1%, therefore, given the forecast, the 2023 GDP should get close to the level of 2021, he said.

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