UPDATE: Cbanker sees lower probability of inflation of 6% in 2019

(Adds details in paragraphs 4–6)

MOSCOW, Mar 5 (PRIME) -- The probability of Russia’s inflation peaking at 6% in 2019 has decreased, Alexei Zabotkin, head of the monetary policy department of the central bank, told reporters on Tuesday.

“The probability that inflation will reach 6% has decreased,” he said.

Central bank Chairwoman Elvira Nabiullina said in December that annual inflation may exceed 5.5% and even reach 6% at its peak in March–April.

The central bank said in a research note that annual inflation will peak until the end of June, and then will fall closer to 4% until the end of 2019.

Inflationary expectation for the next 12 months also fell to 10.1% in February from 10.4% in January, while inflation observed by citizens rose to 10.6% in February from 10.1% in January.

“It should be noted that inflation expected by the citizens was again lower than inflation observed by them, which may serve as a sign of improvement in the assessment of prospects of inflation changes,” the regulator said.

Zabotkin also said that the central bank will appraise the sufficiency of decisions taken in September and December of 2018 to raise the key rate at a meeting of the board of directors on March 22.

In February, the central bank kept the key rate at 7.75% annually.

End