CB spoke about the Russians ‘ distrust of data on low inflation

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ЦБ рассказал о недоверии россиян данным о низкой инфляции

CB carried out the study showed that the majority of respondents have noticed the rising prices of those goods which, according to official statistics, cheaper

Most Russians do not believe that inflation in the country slowed to 3% per year, the report of the Central Bank. Commissioned by the Bank of Russia, the survey showed that 56% of Russians believe that by the end of 2017, the growth of consumer prices will be “much higher than 4%”, with 75% of respondents said that in the previous 12 months prices are rising slower or even faster than before.

“People are not yet ready to believe that inflation actually slowed to such a low level. Also a considerable role in such divergence plays the volatility of prices for individual goods and services”, — the report says CB.
The head of expert group of the Department of monetary policy of the Central Bank of Zoya Kuzmina noted that the subjective perception by Russians of the dynamics of changes in prices even for those products that they buy regularly, contrary to official statistics.

“In fact, sugar prices dropped by almost 20%, fruit and vegetables also fell, the prices of tea and coffee increased slightly (about 2%), but respondents said that increased prices for these goods,” — said Kuzmin.

According to her, this result confirms that the Russians “need a little more time to get used to low inflation.”
According to the report of the Central Bank, in October 2017 direct assessment of the “old” inflation expectations of the Russians for the next 12 months increased to 9.9%. However, the Central Bank assured that the preconditions for decrease in inflation expectations of the population will be created by the consolidation of inflation close to 4%.

In early August, 2017, the Director of the Department of studies and forecasting of the Central Bank Alexander Morozov has also advised Russians not to think about the rapid rise in prices, since it is such mood and help inflation to rise.

Earlier, the head of the Central Bank Elvira Nabiullina warned that extremely low inflation could create new challenges for “emerging economy” of Russia.
 

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