Central Bank does not rule out deflation in summer and September

TASS Russian News Agency | Jun 14, 2019 at 2:32 PM

/Update/

MOSCOW, June 14. /TASS/. The Bank of Russia does not exclude deflation in Russia in summer months and September, chairperson of the regulator Elvira Nabiullina said at a briefing on Friday.

"We do not rule out that deflation may be in summer months or September," she said.

The Bank of Russia has lowered its end-of-year annual inflation forecast for 2019 from 4.7-5.2% to 4.2-4.7% earlier today. The revised forecast takes into account the completion of the VAT increase pass-through to prices, the preservation of relatively favorable external conditions and moderate dynamics of domestic demand. Annual inflation will stay close to 4% later on, the regulator noted.

Annual inflation slowdown continues, the Bank of Russia noted. It reached the estimated 5.0% as of June 10, the regulator notes. At the same time households’ inflation expectations and business price expectations did not materially change and remain elevated ibn May, it added.