Inflation expectations in June was down

Inflation expectations of population and business in June continued to decline, according to information-analytical commentary , “Inflation expectations and consumer sentiment”. The continuing decline is due to the increasing influence of the weak demand and the strengthening of the ruble.

In June of “old” by the order of the Bank of Russia continued to conduct telephone surveys of the population. The survey results indicate a continued downward trend in inflation expectations for the next month. The respondents were more positively assess the current pace of rising prices, and also less likely to speak about a significant rise in long-term storage products, medicines, vegetables and fruits.

According to the monitoring of enterprises conducted by the Bank of Russia in June 2020, price expectations of business for the next three months decreased, while still at an elevated level. The growth expectations were observed in the service industries and construction, representatives of which say the growth of demand in the coming months.

The Bank of Russia until the end of the year, probably a gradual increase in annual inflation. Based on current trends, most likely, inflation by the end of 2020 will be in the bottom of the forecast range of 3.8–4.8 per cent.

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