Bank of Russia Expects Further Decline in Inflation Early This Year

Inflation in Russia is expected to continue declining in Russia early this year, the Bank of Russia said on Wednesday, according to RNS.

According to the Bank of Russia, inflation in the country totaled 3% in annual terms in December 2020.

“The Bank of Russia forecasts a continuation of annual inflation decline in early 2020, in particular on account of withdrawing the effect of a VAT rate increase at the beginning of 2019 from the estimate,” the regulator says.

Inflation can decelerate to 2.5-2.6% year-on-year by the end of January in Russia, department head of the Central Bank Alexander Morozov told reporters earlier.

The regulator reminded me that annual inflation in December 2019 was 3%.

The central bank expects that by the end of 2020, annual inflation will be 3.5-4% “and will remain near 4% in the future.” Earlier, it estimated inflation for 2019 at 3%.

On January 10, the Ministry of Economic Development announced that it expects a further slowdown in inflation to 2.2-2.3% in the first quarter of 2020.

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