Page 28 - RusRPTDec18

Sberbank CIB also forecasts that the increase in military spending anticipated late this year should provide a strong boost to manufacturing growth in the last two months. All in all, the bank expects industrial output to increase 3.3% or more in 2018, which would be in line with the forecast of GDP growth of approximately 1.8%.
4.2 Inflation
Inflation has been creeping up on the back of a pass through from ruble devaluation and rising food prices. However, at circa 3.5% it still remains below the CBR target rate of 4% and will be constrained by the CBR decision to front load monetary policy with a prophylactic 25bp rate hike in September.
28 RUSSIA Country Report December 2018 www.intellinews.com