Inflation closes in on target in April
Annual growth in prices of non-food goods and services continued to decline and annual inflation slowed down to 4.1% in April, notes the latest issue of the Bank of Russia’s informational and analytical commentary, ‘Consumer Price Dynamics’.
Consumer price growth has considerably undershot the forecast made last year. It is mainly the result of the higher-than-expected global oil prices and ruble exchange rate, as well as a wider supply of food products following the record harvests in
At the same time, food inflation increased slightly in April as expected. This was due to depletion of fruit and vegetable stocks. Nevertheless, fruit and vegetables still cost less than a year ago.
Fruit and vegetable price dynamics may bring about a slight increase in the annualised growth in food prices in the forthcoming months. However, overall inflation is not expected to accelerate. A moderately tight monetary policy stance will help mitigate inflation risks.