The prices of goods and services may spike temporarily, the Central Bank warned in a new issue of its analytical report, Consumer Price Dynamics.
Shops and services have reopened after the lockdown was lifted in the country. Some had to alter their business processes.
These factors can drive a temporary rise in prices of various goods and services. According to the report, we will see something described as ‘mixed dynamics,’ with prices going up amid reviving economic activity.
According to experts, the change will be temporary and will reflect the deferred demand effect and the consequences of the ruble meltdown in the first quarter of 2020.
At the same time, while we will be feeling these short-term pro-inflationary effects, the disinflationary effect of weak domestic and external demand will also play a role. According to the Central Bank forecast, the monthly consumer price index will remain at a low level with a greater homogeneity of value dynamics across various categories of goods and services.
As the consumer price index remained low in of the second half of 2019, inflation may start gradually rising now until the end of this year.