Nabiullina: Proinflationary risks increased, economy may return to imbalance of supply and demand

MOSCOW. Sept 11 (Interfax) - Proinflationary risks are estimated as prevailing over disinflationary ones and the economy could return to an imbalance of supply and demand, Central Bank of Russia Governor Elvira Nabiullina said at a press conference on Friday.

"We still consider that proinflationary risks prevail and believe that they have risen. The economy might return to the imbalance between demand and supply, after they aligned in 2026 H1," she said.

"Demand growth might remain elevated as a result of a stronger fiscal impulse and an accelerated increase in lending. Concurrently, if the restoration of production facilities takes more time than assumed in the baseline scenario, this will constrain supply growth. As a result, price pressures might intensify," she said.

Nabiullina also said that the proinflationary risks were related to tension on the labor market and external conditions.

She said that one disinflationary risk was, as before, a more significant cooling in domestic demand than is envisaged in the baseline scenario.