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Russian economy enters large-scale restructuring phase — Central Bank

Business adaptation to the change in external conditions will become a key driver for movements in relative prices in the coming quarters, the regulator pointed out

MOSCOW, March 18. /TASS/. The national economy enters the large-scale restructuring phase that will be accompanied by a temporary yet inevitable inflation spike, the Bank of Russia said on Friday.

The Russian economy is entering the phase of a large-scale structural transformation, which will be accompanied by a temporary but inevitable period of increased inflation, mainly related to adjustments of relative prices across a wide range of goods and services," the regulator said.

"Business adaptation to the change in external conditions, including a changeover in production and supply chains, will become a key driver for movements in relative prices in the coming quarters," the Central Bank said.