CBR notes proinflationary risks posed by weaker ruble, does not believe them to be significant factor yet

MOSCOW. Jan 19 (Interfax) - The ruble weakening observed in December due to positive exchange rate dynamics for most of 2022 has not yet become a significant pro-inflationary factor, the Central Bank of Russia (CBR) said in a report.

"Taking into account the lag effects of the ruble strengthening in Q2 and stabilization of exchange rate dynamics in H2 of the year, the weakening that occurred at the end of the year has not yet become a significant pro-inflationary factor," the regulator said. However, the CBR pointed to the growing risks of the pro-inflationary impact of exchange rate trends in December.

"Deteriorating external conditions, particularly for oil exports, create pro-inflationary risks in 2023," the regulator said.