Central Bank of Russia: in January we had tendency towards inflation expectations decrease

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According to the Russian Federal State Statistics Service the annual inflation exceeded the key interest rate of the Russian Central Bank and reached 15.6%. The inflation expectations are one of the main factors of the monetary policy formation and the key interest rate fixing.

In January 2015 appeared the tendency towards a gradual inflation expectations decrease. Moreover, the direct assessment of the annual inflation and inflation expectations increased dramatically. The monthly inflation qualitative assessment remained at the maximum level considering the whole inflation examination process (starting from the end of 2009).

At the same time the inflation expectations continued decreasing. The Russian people say that the most probable factors of prices increase are the ruble’s weakening and the inflation expectations persistence. In December 2014 the inflation expectations increased more than by 4%, but today the situation improved, say the Central Bank’s representatives.

The inflation expectations of the population decreased and the Russians say that it was due to the last prices increase that had been extremely dramatic. According to Ksenia Yudaeva, the vice-chairman of the Central Bank of Russia, the inflation in January was higher than it was expected, but its peak would be in the second quarter.

Text and pictures by TASS