Inflation Upsurge Amid Bad Weather

Monitoring of Russia's Economic Outlook. Mowcow. IEP. 2017, No 13, pp. 5-7

3 Pages Posted: 28 Jul 2017

See all articles by Alexandra Bozhechkova

Alexandra Bozhechkova

Gaidar Institute for Economic Policy; Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Applied Economic Research

Pavel Trunin

Gaidar Institute for Economic Policy

Date Written: July 26, 2017

Abstract

The Russian consumer price inflation gained speed in June 2017, up 4.4% from June 2016, which is 0.4 p.p.s above the Bank of Russia’s target inflation rate for 2017 and 0.3 p.p.s above the rate seen in May 2017. The price rise was driven basically by the increase, due to adverse weather conditions, in food prices which appears to be temporal. However, the current inflation dynamics may force the Russian central bank to slow its easy monetary policy in an environment of continuing high inflation risks including a lean crop yields, rouble depreciation, consumer demand rally, as well as uncertainty about the fiscal policy.

Keywords: Russian economy, inflation, food prices, monetary policy

JEL Classification: E31, E44, E55

Suggested Citation

Bozhechkova, Alexandra and Trunin, Pavel, Inflation Upsurge Amid Bad Weather (July 26, 2017). Monitoring of Russia's Economic Outlook. Mowcow. IEP. 2017, No 13, pp. 5-7. Available at SSRN: https://ssrn.com/abstract=3009171 or http://dx.doi.org/10.2139/ssrn.3009171

Alexandra Bozhechkova

Gaidar Institute for Economic Policy ( email )

Gazetny pereylok 3-5
Moscow, 125993
Russia

Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Applied Economic Research ( email )

Russia

Pavel Trunin (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

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