(MENAFN) Elvira Nabiullina, the head of the Russian central bank, has raised concerns about the country's inflation rate, stating that annual inflation has now exceeded 7percent. Speaking before the State Duma on Thursday, Nabiullina emphasized the need for caution from the government, particularly in light of the central bank's target of 4%. Her remarks followed criticism directed at the regulator for its recent decision to raise the interest rate to 15percent.
Nabiullina addressed the criticism by stating that annual inflation is akin to a "rear-view mirror," providing insight into past ups and downs rather than offering a comprehensive view of future developments. She highlighted that the annual indicator may not accurately reflect the current situation with prices and stressed the importance of considering the month-to-month progression of inflation.
According to central bank data, the average monthly price increase over the three months through October totaled 0.88percent, corresponding to an annual increase of 11.1percent. This underscores the ongoing challenges posed by rising inflation in the country.
Earlier this month, the Ministry of Economic Development reported a further acceleration in annual inflation in Russia, reaching 7.16percent in the week through November 13. In response to the escalating inflationary pressures, the Bank of Russia revised its inflation forecast for 2023 to a range of 7-7.5percent, an increase from the previous expectation of 6-7percent by the end of this year.
The cautionary remarks from the head of the central bank underscore the complex economic landscape in Russia, prompting discussions about the impact of inflation on monetary policy decisions and the broader economic outlook for the country.
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