CB encourages the Russians to think less about the growth of prices

CB encourages the Russians to think less about the growth of prices

The Director of the Department of studies and forecasting of the Central Bank of Russia Alexander Morozov advised to think less about the growth of prices, since such sentiments help inflation.

“If our inflation expectations are high, we believe that normally, when prices are revised, it enables producers do very often and harder to raise prices on its products, without fear that consumers will go to competitors. Therefore, low inflation expectations is the key to the stabilization of prices in the economy,” he said in a video on the page of the Central Bank on YouTube.

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According to him, people tend to assess the General level of inflation on price changes for goods they buy.

So when the prices of these goods and services are rising, say 10%, we are inclined to believe that the pace of rising prices for other goods and services that we consume. In reality, the prices of many goods and services does not grow or even decline.Alexander Morozovichi of the Department of studies and forecasting of the Central Bank of Russia

He reminded that Rosstat, counting inflation, takes into account the dynamics of prices on more than 700 types of goods and services. “The calculations of Rosstata can be trusted”, — said Mr. Morozov.

Recall that in late June, Finance Minister Anton Siluanov, speaking in the Federation Council, said that annual inflation is 4.1%. Rosstat earlier reported a small acceleration in growth to 4.2%, while earlier in may, the economy Ministry has already hastened to declare the achievement of the target of 4%.

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