In November, price growth sped up across a large number of consumer basket components, impacted by a whole range of proinflationary supply-side factors. These factors include both temporary and relatively longer-lasting ones, with their influence on price trends expected to gradually weaken. These are the findings presented in the new issue of the macroeconomic bulletin Talking Trends prepared by the Bank of Russia’s Research and Forecasting Department.
There are still risks that subdued demand will amplify disinflationary pressure amid the worsening epidemiological situation. The monetary policy decisions made by the Bank of Russia in 2020, along with other measures, will help limit the impact of disinflationary factors.
According to high-frequency indicators, economic growth slowed down in Q4, affected by the pandemic. Nonetheless, the economy will be more easily coping with the period of restrictions than in spring since there are currently no large-scale restrictions, with the decrease in people’s mobility being moderate, and both manufacturers and consumers have better adjusted to the new conditions. Economic recovery will resume in 2021 H1 as the epidemiological situation gradually improves.
The findings and recommendations in the bulletin may differ from the official position of the Bank of Russia.
This news item was originally published by the Central Bank of the Russian Federation (CBR RU). For more information, see the Source Link.