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Russia’s inflation declines to 7.2 percent

Staff Writer | August 1, 2016
Russia’s central bank (CB) said that the country’s inflation declined on course as it held the interest rate.
Russia’s inflation
Russia   Growth dynamics are patchy across sectors
The Bank of Russia left its main lending rate on hold, citing the need to maintain moderately tight monetary policy although inflation was falling in line with its forecasts.

The decision comes as the Russian economy is gradually emerging from a deep slump caused by low oil prices and Western sanctions over the Ukraine conflict.

The central bank estimated inflation had fallen to 7.2 percent as of July 25 from 7.5 percent in June.

It still believed it would meet its 4 percent inflation target by the end of next year, predicting inflation would fall below 5 percent in July 2017.

Growth dynamics are patchy across sectors but the trend for recovery is prevailing and annual gross domestic product growth will enter positive territory next year, it said.