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Reduction of inflation target from current 4% possible no earlier than 2028 — regulator

The wording 'close to 4%' means that small fluctuations of inflation around 4% are possible, the regulator noted

MOSCOW, August 29. /TASS/. Russia’s Central Bank will consider the reasonability of reducing the level of inflation target after its slowdown and stabilization close to 4%, the regulator said, adding that the reduction of the target level is not possible earlier than in 2028.

"If such a decision is made it will be announced several years before the change. It will allow minimizing the costs of the shift of the economy to the new target level. The Bank of Russia will continue discussing the issue with business, analysts and experts, public organizations, the government of the Russian Federation and the Federation Council of the Russian Federation," according to files released by the regulator.

The wording 'close to 4%' means that small fluctuations of inflation around 4% are possible, the regulator noted, adding that such fluctuations are natural and related to constant adjustment of relative prices.