Growth of consumer prices in Russia increasingly persistent - Central Bank’s analysts
MOSCOW, July 12. /TASS/. The seasonally adjusted growth rate of consumer prices in Russia is becoming increasingly persistent, stabilizing above 4% in annual terms, according to the Central Bank’s Research and Forecasting Department Bulletin released on Wednesday.
"The seasonally adjusted growth rate of consumer prices is becoming increasingly persistent, stabilizing above 4% in annualized terms," the document reads.
That said, the economy is still facing serious resource constraints, specifically in the labor market, production capacities and technologies, as well as factors that might intensify price pressure.
"Manufacturers and service providers incur higher costs, including due to the existing barriers to imports. However, they admit that they are unable to quickly meet surging demand because of production, labor and other constraints. As a result, inflationary pressure is intensifying. Considering macroeconomic inertia, this process will still be unfolding in the next few months. Its neutralization will require a reduction in the fiscal and/or credit impulse. A possible rise in inflation expectations following the ruble weakening might become another proinflationary factor," according to the bulletin.
