The rise in prices will stop

21 February 2018, 13:21 | Economy
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By the end of this year, the consumer price inflation index will remain at a low level. This means that prices for everyday products in domestic stores will remain almost unchanged. Last year's record (2.5%) is unlikely to be repeated, but the result still promises to be very decent. According to the forecast of the regulator, inflation in 2018.

will be "slightly below 4%". This can be achieved, mainly due to the stable exchange rate of the national currency. "In the coming months, the rise in food prices will be weak with stable exchange rate dynamics. The growth in prices for non-food goods and services will remain low, "the Bank of Russia's information and analytical commentary on consumer price dynamics for February. At the beginning of this year, prices grew too fast. Therefore, in the second quarter, annual inflation will slow down. Ultimately, if no economic cataclysms occur, the price growth index will move to the planned rate of 4%. Compared to last year, inflation will be about 1.5 times higher. This will be because the Russian economy is growing, which means that domestic demand for goods and services is also increasing, which leads to a certain increase in prices. In addition, the Bank of Russia moved from a moderately rigid to a neutral monetary policy. This is necessary in order to further spur economic growth. Last year's low inflation has added optimism to Russians.

In 2017 year. inflation expectations of residents of our country, according to Rosstat, fell to 10%. This means that citizens assumed that prices will rise by the end of the year by about this indicator. The higher this value, the more people are afraid for tomorrow. Experts note that last year's level of inflationary expectations was the lowest for the last seven years. That is, people have confidence in the future. The fact that in 2018 g. prices will grow by no more than 4%, I'm sure not only the Central Bank, but also the Minister of Economic Development of the Russian Federation Maxim Oreshkin. Meanwhile, the RASHiGS says that such a forecast does not correspond to reality:.

the government is a bit cunning with the method of counting, so as a result, a low inflation rate. First of all, porters are artificially understated due to the fact that the consumer basket "tries to place there a maximum of goods and services that rise in price slowly". "For example, salt stone, men's winter coat on cotton wool and so on.

It is clear that most citizens do not use this type of clothing, but it is included in the calculation of inflation, "said Sergey Hestanov, associate professor of the Department of Stock Markets and Financial Engineering at the Faculty of Finance and Banking (RANGiGS).. The expert admitted that "it is very difficult to create a methodology that would bring official inflation closer to the real one, since it is very difficult to formalize (and even in the whole country) the consumer basket".




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