Nabiullina concerned about the volatility of inflation

© Fotolia / Alexandr BlinovДеньги. Archival photoNabiullina concerned about the volatility of inflation© Fotolia / Alexandr Blinov

CBR is concerned about the factor of volatility of inflation and amplitude of fluctuations of this indicator is now high, the head of the CBR Elvira Nabiullina.

«Now, when inflation is at target, we are really more concerned about not by pace, and… her volatility. Let me remind you that in June inflation was at 4.4%, i.e. by 50% almost higher than it is now. This is a fairly large fluctuations,» — said Nabiullina at a meeting in the state Duma.

«Of course, and then inflation will fluctuate around the target value, because inflation expectations have a very movable, not anchored. But the amplitude of oscillations, in our view, should not be so big, it’s too big even for 4%,» — said the head of the regulator.

Nabiullina stressed that the current level of inflation does not require the Central Bank response measures prep. «Now inflation, our estimate is 2.6%. This slowdown of inflation is provided by a combination of both fundamental and temporary factors. We do not consider the current value of inflation as a deviation from the target, which would require a response by monetary policy measures,» she said.

Inflation in Russia last year reached historic lows and amounted to 5.4%. Landmark Central Bank inflation is 4%. The last updated forecast for MAYOR in 2017 implies consumer price growth of 2.5% to 2.8%. Earlier the Central Bank on Thursday also once again revised its inflation forecast for the current year to 2.5-2.7% from the previously expected 3.2 percent.

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