Weekly inflation data indicate normalization in price growth; process may be gradual - Central Bank of Russia

IRKUTSK. Feb 25 (Interfax) - Current inflation data indicate signs of normalization in price growth, though the process may be gradual, Zoya Kuzmina, economic adviser to the monetary policy department of the Central Bank of Russia, told journalists in Irkutsk.

"We need time to receive data for February and March to see the profile for price reaction. Even now, however, we can clearly see in the current weekly data that the peak [in price growth] occurred in early January, followed by a slowdown in the second half of January and February. It should be noted that this is still current data. The rate of price growth has normalized according to the weekly data," Kuzmina said.

Kuzmina emphasized that gradual effects that could blur the dynamics cannot be ruled out.

"Therefore, we prefer not to elaborate on the assessment [of the VAT increase's effect on prices] at this time, so as not to mislead. However, the fact that the Central Bank has taken the step to lower the key rate is consistent by and large and signals that overall price dynamics, especially after VAT, were in line with our expectations," Kuzmina said.