Russia’s consumer inflation will continue slowing in annual terms in coming months but a recovery in consumer demand amid higher lending activity and budget spending will increase inflationary pressure, central bank analysts said on Wednesday.
Consumer prices in Russia fell for a ninth straight week, and annual inflation slowed to 14.08% as of Sept. 5 from 14.31% a week earlier, which may open the door to a cut in the central bank’s key interest rate as soon as next week.
“A combination of indicators show that sustained inflationary pressures are now at or above the Bank of Russia’s inflation target. At the same time, the risks over the medium term are skewed towards the pro-inflationary side,” central bank analysts said in a report on economic trends.
