Russia (bbabo.net), - Contrary to the expectations of the Bank of Russia, there was no turning point in inflation dynamics. This was stated at a press conference by the head of the Central Bank of the Russian Federation Elvira Nabiullina.

"Contrary to our expectations, there has not been a turning point in the dynamics of inflation today. Moreover, its stable components have even increased," the head of the Central Bank said. According to the Bank of Russia, inflation continues to be high due to the expansion of demand, which continues to outstrip the possibility of increasing output; in addition, the rapid growth of economic activity with a limited available labor force increases inflationary pressure. "Proinflationary remains the conjuncture of world commodity markets. Inflationary expectations are not decreasing yet, remaining at multi-year highs. Under these conditions, the balance of risks for inflation has shifted even more towards proinflationary ones," the Central Bank says.

Earlier on Friday, the Bank of Russia raised its key rate for the eighth time in a row. It has been increased by one percentage point to 9.5% per annum. The rate increase took place against the background of another acceleration of annual inflation, which in early February amounted to 8.8%. At the end of 2021, inflation was 8.4%, which is the highest in six years. According to the current forecast of the Central Bank, by the end of 2022, inflation will be 5-6%.

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