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Inflation in November 2017

Alexandra Bozhechkova – Head of Monetary Policy Department, Center for Macroeconomics and Finance of the Gaidar Institute; Senior Research fellow of the Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Pavel Trunin – Head of Center for Macroeconomics and Finance of the Gaidar Institute; Leading Research fellow of the Center for the Study of Central Banks, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Inflation in Russia dropped to 2.5% year-on-year in November 2017, hitting lows not seen in Russia’s recent history, in response to a good crop, Russian rouble appreciation and slow demand recovery. It appears to be unlikely that consumer price growth will leap over 2.5–2.7%. The economic contraction has prompted the Bank of Russia to double down on easing the monetary policy, cutting the key interest rate by 0.5 percentage points, straight away to 7.75%, on 15 December.

Key words: inflation, monetary policy, key rate, outflow of capital, Bank of Russia.