The Central Bank allowed inflation to deviate from the forecast due to secondary sanctions

Secondary sanctions may cause inflation to deviate from the baseline forecast, as well as complicate calculations and lengthen delivery times due to the concerns of trading partners. This was announced by the chairman of the Central Bank Elvira Nabiullina at a press conference following the meeting of the board of directors of the regulator.

“The risks of tightening the sanctions regime are growing, especially in terms of secondary sanctions, the risks of a slowdown in the global economy remain,” she said, noting that this could lead to inflation deviating from the forecast (cit. by Interfax).

Nabiullina confirmed that the current inflation target is at 4%. In this regard, she admitted that the key rate could be raised at the next meetings of the Central Bank to keep inflation in the event of its acceleration. According to Nabiullina, the balance of risks has shifted towards pro-inflationary ones.

June 7 Minister of Economic Development Maxim Reshetnikov informedthat the department does not see risks that would allow us to talk about going beyond the forecast for inflation, which is expected at 5.3% for the year.

According to Rosstat, weekly inflation in Russia accelerated from 0.08% to 0.21% from May 30 to June 5. In annual terms, inflation was 2.68%. According to the forecast of the Central Bank, inflation in 2023 will be 4.5-6.5%.