OREANDA-NEWS  A sharp rise in the price of motor fuel on the stock exchange, coupled with a rapid rise in the price of fruit and vegetable products, led to an acceleration of seasonal inflation in Russia. This is reported in the press release of the Central Bank (CB) following the October meeting of the board of directors of the regulator on the key rate.

The fruit and vegetable segment as a whole maintains a multidirectional price trend. Some product categories are subject to price increases, while others, on the contrary, are cheaper. All this hinders a steady slowdown in inflation in this segment, the Bank of Russia stated.

According to the results of the third quarter, the Central Bank said earlier, seasonal inflation accelerated by 2 percentage points and reached 6.4 percent. As for the annual increase in consumer prices, by October 20 it amounted to 8.2 percent. This is still more than double the 4 percent target set by the regulator.

The Central Bank noted that the inflation expectations of the population, which continue to remain at an elevated level, are alarming. In October, they amounted to 12.6 percent. Their increase or consolidation at a certain level makes a cautious monetary policy of the Central Bank more likely. This thesis was confirmed by the results of the October meeting of the board of directors of the regulator. As a result, the regulator's management lowered the key rate by 50 basis points, from 17 to 16.5 percent per annum.