Chairperson of the Bank of Russia Elvira Nabiullina has said the inflation in Russia will be about 3.0 per cent in early 2018 and will reach the target of 4.0 in the second half of the year.
"Inflation can be about 3.0 per cent in first months of 2018. According to our estimate, the inflation will closely approach 4.0 per cent in the second half of the year as influence of temporary factors of this year will fade away," she said.
The banker said that the success of their agriculture played the key role in such a significant reduction in inflation: the annual increase in food products in November was only 1.1 per cent, according to global media report.
"The effects associated with the a big harvest of 2017 will gradually be exhausted. In the first half of 2018, this factor will continue to affect the level of annual inflation, it will be completely exhausted only in the third quarter," Nabiullina said.
"According to our estimate, the effect of ruble appreciation on inflation in 2017 is within 1.0 per cent or slightly less than 1.0 per cent; [the effect of] harvest is slightly below 0.5 per cent," the banker said.
Ruble appreciation is still restricting inflation and its effect will be exhausted in early 2018, Nabiullina noted.
"Ruble appreciation is one more factor that continues restricting inflation so far. It largely occurred in the first half of this year. Its effect has almost completely reflected in prices and will be fully exhausted in early 2018," Nabiullina said.