Inflationary pressure not yet showing signs of weakening, annualized price growth yet to peak - Central Bank

Subscribe to Google News

MOSCOW:Inflationary pressure is not yet showing any signs of weakening, with annualized price growth yet to peak, Central Bank of Russia analysts said.

Inflation in annual terms quickened to 6.50% in June 2021, the highest since 6.84% in August 2016, from 6.02% in May 2021, the State Statistics Service (Rosstat) said last week. Inflation for the month of June slowed to 0.69% from 0.74% in May but was still above the 0.6% that analysts predicted in a consensus forecast for Interfax. Prices rose 4.19% in January-June 2021. Rosstat's weekly figures indicated inflation had accelerated, to 0.46% in the week June 29-July 5, from 0.23% the previous week and 0.12% the two weeks before that. But price growth usually quickens in the first week of July as some regulated service charges go up on July 1. Year-to-date consumer price inflation was 4.53% as of July 5, above the Central Bank's 4% target for the year, and inflation for the first five days of July was 0.33%.

"In June, inflation rates and expectations were still elevated. Consequently, annual inflation exceeded 6%. As before, neither the consumer market, nor industrial sectors showed any signs of weakening inflationary pressure. Annual inflation will start to trend downwards steadily after the current monetary policy normalization generates disinflationary effects, which will take time," the Central Bank's Research and Forecasting Department said in its latest Talking Trends bulletin.

"Seasonally adjusted consumer price dynamics are still rather elevated and are showing no signs of slowing so far. As a result, annual inflation reached 6.5% in June. It is unlikely to have peaked yet, given the inertia of inflationary processes and a significant lag in their response to the monetary policy normalization process. The key indicators of sustainable inflationary processes still point to significant inflationary pressures in the consumer sector," the analysts said.

Related Articles

Opinion Poll

Who is your favourite actor?





12th round of India-China military talks to take place soon

Three more PSG players positive for corona virus, six overall. Lionel Messi staying at Barcelona to avoid court fight. Japan Braces For Powerful Typhoon Haishen, Possible Record Rainfall. Third India-US 2 plus 2 Ministerial Dialogue underway in New Delhi. NSA Ajit Doval holds meeting with US Secretary of State & US Secretary of Defence in New Delhi. US Secretaries of State and Defence of USA call on PM Modi. Gadkari lays Foundation Stones of 9 NH projects in Tripura. NTPC Ltd. enters into foreign currency loan agreement with Japanese Government’s financial institution for JPY 50 billion under GREEN initiative. Senior US official tests positive for COVID-19 after Europe trip: media. UK  coronavirus death toll surpass 61,000. Cyprus and Lithuania removed from the travel corridor list of exempt countries. Iranian ambassador summoned regarding Nazanin Zaghari-Ratcliffe. Prime Minister announces new national 4-week lockdown. Japan's COVID-19 cases top 150,000. Brazen armed bank heist in Brazil leaves cash scattered on road. COVID-19 could see over 200 million more pushed into extreme poverty, new UN development report finds. Farm laws are for the benefit of farmers; Opposition misleading farmers. CORONA VACCINE. J&K: Weatherman predicts moderate snowfall across Kashmir from Monday. Farmers’ To Continue Stir Till Farm Laws Completely Repealed,Doubts Raised Over SC Panel.