The VAT rise will affect inflation in the short term, said Nabiullina

© RIA Novosti / Grigory to Sysoeva in fotoreceptor of the Central Bank Elvira Nabiullina at the 10th annual investment forum VTB Capital Russia calling!. 28 Nov 2018The VAT rise will affect inflation in the short term, said Nabiullina© RIA Novosti / Grigory to Sysoeva the image Bank

The VAT increase in Russia from January 1, 2019 is a factor in the short-term impact on inflation, but can have long-lasting effects, said the head of the Central Bank Elvira Nabiullina, speaking at the forum «VTB Capital» «Russia calls!».

«There are features of the current level of development of our economy and financial system — what we nezakonnye inflation expectations. This means that even factors short-acting, short-term factors due to nezakonnoi inflation expectations will be secondary effects, will be transformed into factors of long course. For example, we estimate the effects of an increase in VAT, which in fact are factors short action, but can have long term effects,» — said Nabiullina.

The basic VAT rate in Russia from 1 January 2019, will rise from the current 18% to 20%. Of the Central Bank in August estimated the total contribution of the VAT increase in annual inflation in the corridor from 0.6 to more than 1.5 percentage points. The main impact of rising VAT, according to the regulator will be in the first months of 2019.

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