Inflation in Russia close to 4% target - Nabiullina

Inflation in Russia is close to 4% target, but in the end of 2020 and early in 2021 disinflationary factors will be dominant, as Elvira Nabiullina, Governor of the Central Bank of Russia said in an interview to Russia24 TV channel.

"We are now conducting a soft monetary policy, focused on getting the inflation back to the target, to 4%, though it must be said that the latest development show that the inflation is already on target – about 4%", - said Nabiullina.

"Nevertheless, the pandemic’s development, the latest data show that disinflation factors will most likely dominate late this year and next year ", - added the CB head.

The Central Bank still believes there is space for further easing of its monetary policy. "This will depend on the situation, which decisions we will be making, when and what moves will be made. You are absolutely right, there may be some parameters for lower rate or a longer period of the rate staying below the point we consider to be neutral ", - noted Nabiullina.

She reminded that the base scenario for 2021 views the year as a soft monetary policy year.

Annual inflation as of October 26, based on Rosstat’s weekly data, has accelerated to 3,94% from 3,85% on October 19, 3,82% on October 12 and 3,76% on October 5. At the end of September annual inflation in the RF was 3,67%.