Head of the Central Bank, Elvira Nabiullina, reported that the regulator expects inflation in Russia to be at 4.5% at the end of 2020 and will begin to decline “in the middle of the first half of 2021”. According to her, in February the level of consumer prices may reach a peak, but is unlikely to exceed 5%.
“In November, annual inflation exceeded 4% and is likely to begin to decline only in the middle of the first half of 2021 after passing local high values. This is partly due to the effect of a low base,” the regulator’s experts say. They added that as for consumer prices, since March 2020, the effect of the weakening of the ruble has manifested itself slower and longer than “in previous episodes.”
