The Central Bank reported that the inflation expectations of Russians in May fell to 11.3%

Inflationary expectations of the population of the Russian Federation in May decreased after rising in the previous month, but remained at elevated levels, according to the information and analytical commentary of the Central Bank.

Thus, the median estimate of inflation expected in the next 12 months was 11.3%, which is 0.6 percentage points lower than the April data. At the same time, inflation observed by the population increased slightly in May. Its median estimate was 14.8%, which is 0.3 percentage points higher than the April data, follows from the results of the inFOM survey commissioned by the Bank of RUSSIA.

“In May, inflation expectations decreased among respondents both with and without savings. At the same time, estimates of observed inflation decreased only among respondents without savings, while among respondents with savings, they continued to increase,” the Central Bank added.

Weekly food prices - Rosstat

According to the regulator, such a discrepancy in estimates of observed inflation among respondents may reflect the greater sensitivity of low-income groups of the population (mostly those who do not have savings) to the dynamics of prices for certain socially important goods. Some easing of price pressure in this market segment was reflected in their estimates of current inflation to a greater extent: in May, respondents spoke much less frequently than in the previous month about rising prices for vegetable oil, SUGAR, MILK and dairy products. However, the rise in prices for eggs, MEAT and poultry is still a high concern among the respondents.

According to the forecast of the Bank of Russia, inflation in 2021 will be 4.7-5.2% and will return to the target of 4% in mid-2022.