Advisor to the head of the Central Bank of the Russian Federation announced increased inflationary pressure

Recently, inflationary pressure on the Russian economy has increased, which gives rise to some concern. This was stated by Advisor to the Head of the Central Bank (CB) Kirill Tremasov, his words were quoted by RIA Novosti.

It is for this reason, he noted, that at the end of the September meeting the regulator’s management decided to leave the key rate unchanged for the first time in a long time, keeping the level at 14 percent per annum. “In July and August, we already saw that inflationary pressure was beginning to increase in the stable components of inflation,” Tremasov concluded.

Taking into account such dynamics, he added, the board of directors of the Central Bank decided to act more cautiously in changing monetary policy. Moreover, the regulator’s management was forced to increase its estimate of current sustainable inflation to 5-6 percent in annual terms. “This is exactly one of the main signals that forced us to act more carefully and take a break,” Tremasov stated.