Almost every fourth Russian believes inflation to fall to 4%

Inflation expectations of households continued to go down in January 2017. The BoR-commissioned survey held by inFOM in January suggests that the share of respondents convinced that the Bank of Russia’s 4% inflation target is achievable is the highest ever.

Nevertheless, most respondents expect inflation to persist at the previous level by the year-end, and the median inflation expectations exceed the Bank of Russia’s target more than twofold. It may hamper inflation slowdown and calls for maintaining the Bank of Russia’s moderately tight monetary policy.

Russians were more positive about their financial standing in January. In the inFOM-conducted January survey, 23% of respondents expect their financial standing to improve in the next 12 months – the highest value ever. Amid the dropping prices for furniture, electronics, clothes and real estate, respondents more frequently considered this period to be suitable for large purchases.

At the same time, high rates in the economy and low savings encourage households’ propensity to save. In January, the record high 23% of respondents said this period was appropriate for saving.

The consumer sentiment index was growing for the second month in a row in January. In addition, respondents were more positive with regard to both their personal well-being and the country’s prosperity.