04 December 2015, 13:14 / Economics

The Central Bank saw the threat of rising prices in anti-Turkish sanctions

Limiting the import of Turkish products could lead to an additional increase in consumer prices by up to 0.4 percentage points in 2015-2016, according to the monthly bulletin of the Research and Forecasting Department of the Bank of Russia. As Interfax reports , the regulator considers this a one-time price shock and believes that this will not increase inflation in the medium term unless inflation expectations worsen.

Nevertheless, strengthening customs controls over imports from Turkey across the entire product range may pose a threat to rising prices, warns the Bank of Russia.

The Ministry of Economic Development agrees with the Central Bank’s assessment of the contribution of the Turkish food embargo at 0.2-0.4 percentage points to inflation, but believes that this will affect inflation next year, but will not have time to influence it this year, Interfax reports.

Deputy Finance Minister Maxim Oreshkin said that he did not see “cardinal risks” for inflation due to tensions in relations with Turkey, but this was even before the introduction of a partial ban on the supply of vegetables and fruits. Since announcing the measures against Turkey, the ministry has not provided estimates of the embargo's potential impact on inflation.

Rosstat will publish data on price dynamics for the first “Turkish” week on December 9, Interfax recalls.

Previously on the topic: FAS does not expect an increase in food prices due to sanctions against Turkey Previously on the topic: Auchan does not rule out an increase in food prices due to sanctions against Turkey Previously on the topic: Peskov: Anti-Turkish sanctions in Russia differ from the anti-Russian sanctions of the West