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    Ban on Turkish Imports to Raise Russian Food Prices - Central Bank

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    The introduction of a ban on food imports from Turkey creates a risk of increased food price inflation caused by rising costs due to a change in import destinations, according to a report of the Central Bank of Russia.

    MOSCOW (Sputnik) — The ban on certain food imports from Turkey will lead to an additional increase in Russian food prices of 0.5 to 1.1 percentage points, the Central Bank of Russia said in a report published Friday.

    "The introduction of a ban on food imports from Turkey from January 1, 2016, creates a risk of increased food price inflation caused by rising costs due to a change in import destinations. The additional increase in food prices is estimated at 0.5-1.1 percentage points, which corresponds to a raise in the overall growth of consumer prices by 0.2-0.4 percentage points," the report reads.

    The ban may also lead to disruptions in fruit and vegetable deliveries to Russia, according to the Central Bank.

    Capital outflow in Russia in 2016 is expected at $53 billion, according to the report of the Bank of Russia. 

    The report paints a generally more optimistic picture of the capital outflow in the country for the next three years, improving previous forecasts for 2017 from $58 bln to 48 bln, and for 2018 from $52 bln to $46 bln.

    Head of the Bank of Russia, Elvira Nabiullina, said earlier on Friday that the capital outflow in 2015 is expected at $58 bln.

     

     

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    Tags:
    inflation, Russian Central Bank, Turkey, Russia
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