The Central Bank announced the review of inflation expectations of the population and business entities for November.

According to it, the population’s inflation expectations increased by 0.2% compared to October and amounted to 15.3%.

In November, the percentage of respondents who expect inflation to be around 13-16% in the future has increased significantly.

The population believes that the following factors will affect future price increases:

•  currency depreciation (51%);
•  increase in the price of fuel and energy resources (38%);
•  increase in the price of basic food products (37%).

In addition, factors such as artificial increase of prices (35%), increase of wages and benefits (28%), increase in housing and rental fees (22%), high difference between prices in supermarkets and markets (11%) also had a significant impact on the population’s inflationary expectations.

Inflationary expectations of business entities

According to the results of November, the expectations of the respondent business entities regarding price growth for the next 12 months made 14.3% and increased by 0.3% compared to the previous month.

Business representatives believe that the following factors will affect the price increase:

•  increase in prices of fuel products and transport services (50%);
•  currency depreciation (48%);
•  increase in the price of imported raw materials and components (32%).

Also, the percentage of entrepreneurs who expect an increase in wages and allowances, interruptions in the supply of raw materials from abroad, and a worsening of the economic competitive environment has significantly increased compared to last month.