The Central Bank believes that there will be no deflation in August and September

Since a favorable situation is developing in Russia with the grain harvest and the harvest as a whole, in September the price dynamics may become disinflationary, said Alexei Zabotkin, Deputy Chairman of the Bank of Russia. At the same time, he explained that the regulator considers it incorrect to talk about deflation on a negative price index in the future of one or two months.

“There will be no deflation in August or September, within the framework of my definition. Just as it has never happened in the entire modern history of the Russian Federation. In general, the dynamics of food prices and the situation with the harvest is favorable. Therefore, probably, the dynamics of seasonal factors will be of a disinflationary nature,” Mr. Zabotkin said today, August 12, at a press conference (quoted by TASS). At the same time, he noted that the disinflationary impact of demand in June-July was more pronounced than the Central Bank had predicted.

Earlier, the head of the Ministry of Agriculture Dmitry Patrushev reported that this year Russia could not reach target of 130 million tons of grain, and the harvest and food exports may be reduced. In May, Russian President Vladimir Putin said that in 2022 expected record grain harvest in the history of the Russian Federation.

Read more about the harvest of 2022 in the material “Kommersant FM” “The harvest is crippled”.

Andrey Sapozhnikov