Good crops add to lower inflation
Annual inflation in September slowed down to 6.4% which makes us believe it will further reduce to
One needs to mention that the temporary factor — increase in agricultural production due to good crops against the background of slowing growth of prices for non-foodstuffs and services still being unstable — is an important factor behind improved price dynamics.
Besides, a steady downward trend of households’ inflation expectations is yet something to take shape. All this is indicative of inflation risks.
Pursuing by the Bank of Russia of moderately tough monetary policy will support further decline in inflation to the 4% target in 2017.