Russia's consumer prices rose by 0.65% month-on-month and 10.3% year-on-year in March, according to the latest data from state statistics agency Rosstat.
Stubborn inflation and the ensuing high interest rates continue to be a major concern for Russian policymakers.
At the end of March, inflation finally curbed below the Central Bank guidance, but it remains far from the target of 4% — trending above the double-digit level of 10%.
The Central Bank acknowledged that inflationary pressures are easing, but resolved to keep the key interest rate unchanged at 21% at its March 21 policy meeting. The decision was in line with consensus expectations.
Renaissance Capital said that March inflation exceeded its own and the consensus forecast, but still remained below the Central Bank's February estimate of 10.6%.
The analysts at RenCap still maintain that the latest figures, including early April weekly inflation data, indicate a stabilization of inflationary pressures, albeit at a level still above the Central Bank’s target.
The Central Bank is expected to keep the key rate unchanged in April.
However, as the regulator recently warned, falling global oil prices and heightened uncertainty about the international economic outlook could postpone the start of monetary easing beyond RenCap’s previous forecast of June.
This article first appeared in bne IntelliNews.
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