July 12, 2021

MOSCOW (Reuters) – EMBARGO 1730 GMTInflationary pressure remains high in Russia, the central bank said in a report on Monday, but there are signs that some pressure is easing and annual inflation will start to fall in the autumn.

In June, annual inflation accelerated to 6.5%, its fastest rate since August 2016, providing Russia with a strong argument to raise rates at its next rate-setting meeting on July 23 and adding to concerns that tighter monetary policy might hamper economic growth.

The central bank on Monday said inflation would return to the 4% target in the second half of 2022 and remain near that level in the future.

(Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Editing by Chris Reese)