Households’ inflation expectations turn more positive in early May
The third telephone survey of households, commissioned by the Bank of Russia, which LLC inFOM carried out between 30 April and 7 May, records a drop in inflation expectations for the month ahead. Respondents more seldom project high growth of prices in the forthcoming month; yet their prediction for inflation to exceed its early-year reading is unchanged.
In the group of products with prices growing strongest, respondents tend to mention less frequently non-perishable goods (cereals, sugar and pasta) and fruit and vegetables — whose price growth decelerated between late April and
The third survey also confirmed a negative view of respondents as to changes in their financial positions. This worsening in financial standing is predominantly connected to dropping incomes. Having said that, expectations for change in financial standing in the month ahead turned more positive relative to the first and second surveys held in April.