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Why the rate will be raised
👉 To return inflation to the target level by increasing housing and communal services and recycling collections, the central bank's interest rates will have to rise further or remain high for a long period of time. The utility tariff in 2025 and the increase in the collection of scrapped cars will require the regulator to tighten monetary policy to return inflation to the 2025 target of 4%. Thus, an increase in the utility index from the previously projected 5.7% to 11.9% from July 1, 2025, will add 0.4 percentage points (pp) to the consumer price index (CPI) in 2025. Another pro-inflationary regulatory factor is that the car recycling rate will increase rapidly from October 1, 2024. The increase in car imports before October 1 allowed dealers to stock up on cars at previous prices. However, according to analysts at the central bank, by the end of 2025, the cumulative effect of the increase in the recycling fee on the consumer price index could be between 0.4 and 0.6 percentage points. Despite the fact that these factors are one-off and do not affect the sustainable rate of price growth, the effect of these factors in the context of "unfixed and high inflation expectations" could have a secondary inflationary impact on consumer prices. analysts note. ❤️ Read more on the website @frank_media. Add posts with up to 15 pluses if they are suitable for the main page. I recommend subscribing to this blog.