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2. Inflation Monetary policy report
and inflation expectations No. 2 (26) · June 2019 19
Annual inflation reached a local peak of 5.3% Inflation and
stabilising the
inflation that results from high oil prices.’ Plante (2014) supports core inflation targeting (when wage flexibility is high, and
even more inflation volatility
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solid foundation for development: low inflation and tools to stabilise it around the target level, first of all, the inflation targeting policy and a disciplined
VAT hike on household inflation expectations
has worn off.
1.1.2. Trend inflation: inflation pressure slightly above target level
Trend inflation in April 2019
communications “Floating rate and
Inflation targeting is Instruments are Inflation below 4% Inflation 4.3%
represented as a developed, the inflation targeting
midterm goal in
and constitutes an underlying asset.
rate of a respective currency, interest rates, inflation rate,
derivatives’ prices, official statistical information, physical,
Table 3.5
biological and
0
2014 2015 2016 2017 2018 2019
Inflation observed Inflation expected Inflation
Source: LLC “inFOM”, Rosstat
7
Inflation expectations – businesses
The price expectations Replies of
of the Bank of Russia’s monetary
policy following the slowdown in inflation and statements by Bank of Russia representatives.
yy The Russian financial market
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17.06.2019
of the Bank of Russia’s monetary policy following the slowdown in inflation and statement by Bank of Russia representatives.
The structural liquidity surplus rose
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14.06.2019
inflation expectations of households and businesses remain elevated against both the inflation target and the minimum levels reached in the opening months of 2018. Inflation