The pick-up in Russian inflation over the past couple of months has been driven primarily by a surge in food prices, which should be temporary in nature. Instead, the bigger risk to the inflation outlook remains that the rapid expansion of the monetary base over the past year starts to feed into a rise in consumer and asset prices over the second half of 2011. The policy response, however, is not straightforward and a hike in the benchmark interest rate would be nothing more than a symbolic step.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services