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in inflation of 2022 H2 will be removed from the calculation base. Given the monetary policy pursued by the Bank of Russia, annual inflation will

one-off inflation drivers sent consumer prices higher and worked to keep inflation expectations of households and businesses at an elevated level. Also, sustained inflation risks

at 7.50% per annum. Economic activity continues to expand. Inflation trends remain moderate. Households’ inflation expectations have decreased significantly, while staying elevated. External conditions

of inflation, current price growth rates remain moderate. Inflation expectations of households and price expectations of companies remain elevated. At the same time, inflation expectations

remains committed to the inflation-targeting regime, maintaining annual inflation at around 4%.2 Low and stable inflation makes economic conditions generally more predictable and provides

situation for achieving Credits and deposits include credits, deposits, and repo the inflation target. The key rate is set by the Bank of Russia funds

up................................................................................................................................32 Inflation expectations remained elevated...........................................................................................................33 Inflation will stabilise close to 4% in 2024......................................................................................................... 34 Box 3. Specifics of changes in households’ inflation expectations

notable impact of one-off factors, resulting in invariably elevated inflation expectations of households and businesses. Sustained inflation risks originated from the budget, the labour market

which monetary policy influences demand and, market rates constrain demand and inflation, accordingly, inflation. This mechanism is based while lower ones stimulate them. In addition

CGE models ignore monetary and financial aspects of the economy (e.g., inflation). As regards climate policies, most CGE models focus on analysing economic costs