Talking Trends: growth continues with uptick in inflation
Fresh statistics and high frequency data suggest continued economic growth, which is however more uneven. As the consumer sector, wholesale trade and manufacturing expanded, weaker readings were recorded in mining and quarrying, transport, and agriculture.
An acceleration was reported in the monthly growth of consumer prices (seasonally adjusted), in large measure accounted for by short-lived factors. Inflation expectations remained high. At the same time, a gradual cooling is emerging in lending, and savings are in growth territory.
The tight monetary conditions are expected to further decelerate the expansion of lending and demand in the economy, ensuring that inflation returns to 4%.
More details are presented in Talking Trends, a Bank of Russia bulletin.