OREANDA-NEWS. Annual inflation in September slowed down to 6.4% which makes us believe it will further reduce to 5.5-6% by 2016 end, Bank of Russia tenth issue of information and analytical commentary Consumer Price Dynamics states.

One needs to mention that the temporary factor – increase in agricultural production due to good crops against the background of slowing growth of prices for non-foodstuffs and services still being unstable – is an important factor behind improved price dynamics.

Besides, a steady downward trend of households’ inflation expectations is yet something to take shape. All this is indicative of inflation risks.

Pursuing by the Bank of Russia of moderately tough monetary policy will support further decline in inflation to the 4% target in 2017.