Expected Russian inflation for the next 12 months fell to 11.2% in March from 12.9% in February, the central bank said in a report on March 30.
According to the survey, 23% of respondents believe that inflation will reach the target of 4% set by the central bank for 2017, against 18% in February.
“This way, the trend for reduction of inflation expectations has remained since the start of 2016. It has been favored by a sustainable reduction of real inflation. But reduction of inflation expectations is slow; they still exceed the Central Bank of Russia’s medium-term goal. High volatility of the dynamics reflects the fact that inflation expectations are unconnected with the target inflation set by the Central Bank of Russia. The pro-inflation risks connected with that require retention of a moderately severe monetary and credit policy,” the authority said. (Prime/Business World Magazine)