Russian economy reaching pre-pandemic level in Q2 ó Central Bank

However, flash June estimates evidence a possible pause in consumer demand recovery in coming month, the regulator pointed out.
The Russian economy reached pre-pandemic level in the second quarter of this year but there can be a pause in consumer demand recovery in coming months, the Central Bank said on Wednesday.
"The Russian economy continued growth in May - June, particularly owing to quick growth of lending volumes. The economy reached the pre-pandemic level in the second quarter as a result. Flash June estimates evidence a possible pause in consumer demand recovery in coming month in the environment of growing uncertainty with the epidemiological situation," the Bank of Russia said.
Flash indicators for June highlight growth stability or its small slowdown against April - May rates, the regulator noted. "Toughening of lockdown measures caused by epidemic situation worsening occurred closer to end of month, and is fairly local so far, largely affecting the consumer services sector," it added.
Inflation peak in Russia probably not achieved.
Annual inflation in Russia stood at 6.5% in June, and its peak value has not yet been probably reached, the Central Bank stated.
"The seasonally adjusted consumer price dynamics remains materially high, and has not yet demonstrated signs of slowing down. Annual inflation reached 6.5% in June as a result. Its peak value has not yet been probably reached, considering inertia of inflation processes and a significant delay in their response to the monetary policy normalization process," the regulator said.
Inflation as of 2021 year-end is expected to be higher than the April forecast of the Bank of Russia that is equal to 4.7-5.2% but lower than the current level, Chairperson of the Bank of Russia Elvira Nabiullina said earlier. The inflation outlook will be revised at the regulatorís Board meeting on July 23, she added.


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