OREANDA-NEWS. April 2016 saw a significant contraction (down to 15%) in the share of Russian households who expect inflation to accelerate over the forthcoming year. This is evidenced by the inFOM survey commissioned by the Bank of Russia. Inflation expectation estimates for a year ahead have also improved, though remaining at elevated levels.

Last-month price dynamics deserved more positive assessments by Russians. However, the majority of respondents are still sure that the last-year inflation pace has been higher than before.

In response to a noticeable stabilisation in price dynamics observed over the past few months, the respondents tend to mention the price growth for cheese, sausage, chicken eggs and oil less frequently. At the same time, the actual increase in petrol prices triggered a growth in the share of respondents concerned about these particular price dynamics.

Households' consumer and saving propensities have not changed significantly in April compared with March. Individuals would rather save their earnings, than spend them on goods and services. The majority of respondents (54%) reported that they save their free money with their most favoured form of saving still being a bank account.

In April, respondents demonstrated an increased optimism when speaking about possible changes in their personal well-being over the forthcoming year. The share of those who expect a decline in their well-being (26%) has been on the downward track for the fourth month in a row.