UrBC, Moscow, September 4, 2018. Russians surveyed in August say they expect the inflation rate to reach 9.9% in the next twelve months, a comment on Central Bank’s website claims.

‘People’s inflation expectations remained nearly the same in August 2018 as in last September and October: the estimate is 9.9% for the next twelve months (compared with 9.7% in July 2018),’ the comment states.

Respondents now refer to inflation as the reason behind growing gasoline prices less frequently than before; however, the weakening of the Russian ruble and the recent VAT increase are quoted more often. According to the Central Bank, the latter two factors might further worsen inflation explications in the coming months.

‘The scale and the duration of the effects are difficult to assess at the moment. This uncertainty is one of the primary inflation risks now, so the Bank of Russia will be paying special attention to it,’ the bank states.

Also, the share of respondents who believe prices will rise by over 4% before the end of the year came to 58% in August (compared with 56% a month earlier).