SERGEY ZUBOV SPOKE WHY INFLATION IN RUSSIA SLOWED DOWN
Sergey Zubov, Senior researcher of Financial Studies Department of the Gaidar Institute, told ”Rossiyskaya Gazeta” why inflation had suddenly slowed down in Russia.
According to Rosstat, the inflation index accounted only for 0.2% from 9 to 15 April against 0,66% a week earlier. Thus, prices rose since the beginning of the month by 1% and by 11.05% year to date.
Sergey Zubov believes that the decline in inflation was expected. "At the end of February, the Central Bank raised the rate to 20%, thereby curbing inflationary processes. The Central Bank's timely measures helped to activate the interest rate channel of the monetary policy transmission mechanism, which contributed to growth of deposit rates and the decline in the dollar and euro. The effect of such measures at the consumer market is not visible at once, it goes through financial markets within about a month," the expert said.
According to Zubov, in the absence of new shocks, the central bank is in a position to stabilize the situation and return to its inflation target index of 4% in the longer term. However, economic stabilization cannot be predicted due to various risks.
Sergey Zubov believes that the decline in inflation was expected. "At the end of February, the Central Bank raised the rate to 20%, thereby curbing inflationary processes. The Central Bank's timely measures helped to activate the interest rate channel of the monetary policy transmission mechanism, which contributed to growth of deposit rates and the decline in the dollar and euro. The effect of such measures at the consumer market is not visible at once, it goes through financial markets within about a month," the expert said.
According to Zubov, in the absence of new shocks, the central bank is in a position to stabilize the situation and return to its inflation target index of 4% in the longer term. However, economic stabilization cannot be predicted due to various risks.