02:38 GMT10 August 2020
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    Russia's Central Bank recalled that the slowdown in inflation started last year after the increase in the base inerest rate, according to an official statement.

    Central Bank of Russia
    © Sputnik / Natalia Seliverstova
    MOSCOW (Sputnik) — Russia's annual inflation will continue slowdown in February and will reach 8.3-8.7 percent, Russia's Central Bank announced on Friday.

    "There are still inflation risks. In particular, against the backdrop of economic uncertainty, inflationary expectations of the population remain heightened," the bank said in a statement.

    The bank recalled that the slowdown in inflation started last year due to the effect of high base rates, after prices in 2015 increased significantly.

    "At the same time, decrease in demand played a role as well, which is obviously not influenced even by the ruble's volatility: the [Russian] citizens were in no hurry to stock non-food products," the bank said.

    The Central Bank sharply increased key interest rates to 17 percent in December 2014 in an attempt to limit growing devaluation of the national currency, as well as inflation risks. Throughout 2015, the bank lowered the key rates, finally resetting it at 11 percent in August.

    In January, the annual inflation in Russia amounted to 9.8 percent.

    Earlier in the day, head of the Bank of Russia Elvira Nabiullina forecast that the inflation rate in Russia would be no more than 4 percent by 2017 under the the baseline scenario of national economic development.

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    Tags:
    inflation, Russian Central Bank, Russia
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