Central Bank reports trend inflation in Russia declines to 7.4% in December 2016


Trend inflation in Russia declined from 7.6% in November to 7.4% in December 2016, the Central Bank reported on Tuesday. This shows weakening of inflation pressure, the regulator said.

"We expect further gradual decline of the trend inflation estimates if current trends of price dynamics and money aggregates are maintained," the regulator said in the comment.

Nevertheless, risks remain that inflation will deviate from the target [4% - TASS] as of 2017 year-end, the Bank of Russia said.

The regulator started publications of trend inflation in June 2015. The Bank of Russia believes it may be viewed as long-term estimation of inflation component and serve as a relatively safer landmark for monetary policy as compared with a more volatile actual rate of prices growth. The Bank of Russia takes into consideration trend inflation when taking decisions on its key interest rate.


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