Price growth in April accelerated due to temporary factors

In April 2020, annual inflation rose 0.6 percentage points to 3.1%. As in March, the acceleration of consumer price growth occurred under the influence of a temporary increase in demand for the commodities under regime of self-isolation in Russian regions, as well as the incident of the weakening of the ruble, according to information-analytical comments , “the Dynamics of consumer prices”.

Increasingly expensive cereals, pasta, lemons, non-food commodities that influenced the increase in the annual growth rate of prices for goods in General. Rising prices for services, in contrast, slowed down, which was due to the termination of the provision of many of them and lower demand for those services, the provision of which continued. In the near future, according to Bank of Russia estimates, the pressure on food prices will weaken as the softening of the regime of self-isolation.

In the future, the likely increase in annual inflation, including because of the release of calculate low values in summer / autumn of 2019. At the same time as the exhaustion of short-term proinflationary effects predominant factor will be the disinflationary impact of declining domestic and external demand due to the restrictive measures against the epidemic of coronavirus. Given the ongoing monetary policy annual inflation of 3.8–4.8 per cent at the end of 2020 and will remain close to 4% in the future.

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