There are three risks that could cause Russian inflation to deviate from the baseline forecast in the near future. These included: a lack of “laborers”, a delay in the increase in labor productivity from a rise in wages, and a rapid slackening of consumption as enforcement pressure tightened, opens Words of Elvira Nabiullina RIA Novosti, head of the Central Bank (CB).
“Three risks should be noted. The first is the rapid easing of consumption in the face of rising inflationary expectations. Second, there is a growing labor shortage and labor productivity growth lags behind wage growth. Finally, Nabiullina said the risks of further tightening of sanctions restrictions remain.
According to him, the risks of deviation from the main inflation forecast to strengthen the growth dynamics of consumer prices in the Russian market have increased recently.
“According to our assessment, the balance has shifted further towards pro-inflationary balances,” Nabiullina said.
February 10 Central Bank (CB) Deputy Governor Alexei Zabotkin estimated Annual inflation in Russia to fall below 4% in April-May 2023. The acceleration in consumer prices in the domestic market until the end of December will most likely vary between 5-7%.
Source: Gazeta
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