UPDATE: Report: Cbanker: Russians’ inflation expectations high, unanchored

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MOSCOW/ST. PETERSBURG, Jul 5 (PRIME) – Russians’ inflationary expectations remain high and unanchored, Central Bank Chairwoman Elvira Nabiullina told channel Rossiya 24 in an interview broadcast on Friday.

“We are more tolerant to inflation below our target than the one above our target,” Nabiullina said.

“This is primarily connected with the patterns of inflation expectations, they are still quite high and not anchored. A long history of low inflation is needed to anchor them.”

In June, inflation expectations for the next 12 months rose by 0.1 percentage point to 9.4%.

Cbanker sees Russia’s annual inflation below 5% in June.

Alexander Morozov, head of the central bank’s research and forecast department, told reporters

that Russia’s inflation would fall below 5% in annual terms in June due to one-time disinflationary factors.

“Year-on-year dynamics will be below 5%,” Morozov said, adding that food inflation will slow down over the next few weeks, reducing annual inflation.

“Short-term pro-inflationary risks are not high, I think. The current balance of one-time risks is skewed in favor of disinflationary pressure,” he said.

Previously, Central Bank First Deputy Chairwoman Ksenia Yudayeva said that the slowdown of inflation in June happened due to good weather, which accelerated harvesting and reduced prices for vegetables.

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