Bank of Russia Governor Elvira Nabiullina commented on the rise in prices in Russia for a number of goods, including building materials. According to governor, the increase in their value is due to the surge in home sales, which is observed as a result of the launch of the preferential mortgage program at 6.5%.
“Almost multiple change in prices for a number of goods, in our opinion, is temporary. Building materials in particular. In terms of monthly inflation in May, this is a very high indicator,” stated Nabiullina.
Due to the high demand for mortgages, the supply of building materials sometimes does not have time to adjust, which is reflected in the cost of goods. Therefore, inflation is of a demand nature, explained the head of the Central Bank.
