Russian c.bank analysts predict higher inflation pressure in H2

By Kitco News / June 06, 2017 / www.kitco.com / Article Link

MOSCOW, June 6 (Reuters) - Russia's consumer price growth is set to accelerate in coming months but this is unlikely to prevent inflation from slowing to the central banks' target of 4 percent this year, analysts at the central bank said on Tuesday.

In a monthly report on market trends, the central bank's analysts predicted higher inflationary pressure in the second half of the year due to cold weather this spring and an expected economic recovery.

The rouble's appreciation seen between January and April is expected to have an impact on inflation until at least mid-2017, the analysts said.

The report comes before the central bank's regular board meeting on June 16 where it will consider cutting the key rate -- now at 9.25 percent -- by 25 or 50 basis points, as suggested by Central Bank Chairwoman Elvira Nabiullina. The bank's analysts also said they expect gross domestic product to expand by around 0.5 percent quarter-on-quarter in seasonally-adjusted terms.


(Reporting by Elena Fabrichanaya; Writing by Andrey Ostroukh; Editing by Jack Stubbs)

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