The inflation will replace deflation, said Nabiullina
Moscow, July 20 (New Day, Svetlana Petrova)
– On the eve of elections to the state Duma, Russia’s population is waiting for lower prices on products. In the Central Bank expect the onset of deflation in August-September, despite the growth of inflation in June. This statement was made head of the Central Bank Elvira Nabiullina.
According to her, the cost of food can contribute to a good harvest in the country. The head of the Bank of Russia stated that such a forecast on the situation with the prices was made without considering the changes that can bring to the economy lifting food sanctions against Turkey, reports “Prime”. Note that during the spring months, inflation in Russia decreased to 7.3% year on year and since the beginning of summer moved to accelerate to 7.5% in June.
According to experts, in the first place will decrease the prices of vegetables and fruits, as well as for bakery products, due to the seasonal growth of their suggestions. Prices for other domestic products, is likely to remain at the same level.
The chief economist of the Corporation “URALSIB” Alexei Devyatov, in turn, noted that we should not expect cheap water-melons and melons, as because of the rains the crop of gourds will be low. The situation with a cereal he called prosperous.
With regard to imported products, the situation will largely be determined by the stability of the Russian ruble, which in turn depends on prices on hydrocarbons and from social and political priorities of the authorities. Yet experts see no reason to increase prices, as the ruble has significantly strengthened its position recently, despite the fall in oil prices. According to analysts, the “freezing” of the national currency of the Russian Federation could be linked to the early elections to the state Duma. But interestingly, today, the ruble started to weaken significantly against the dollar. It happened after our last conversation of Russian President Vladimir Putin and Dmitry Medvedev. The head of state drew attention of the Prime Minister, the ruble strengthened, in spite of price volatility in commodity markets, and urged to think about what to do in the near future in connection with this factor. According to observers, behind closed doors it was about that, with the strengthening of the ruble exporters of raw materials begin to lose profit. In this situation probably could have decided not to freeze the exchange rate of the Russian currency on the eve of elections.
According to Devyatova, deflation in any case will be small and will not exceed tenths of a percent that will not give the Central Bank no reason for a possible rate cut. The Bank of Russia understands that this factor is seasonal and will not consider it, the expert believes.
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