about a new stage in the bank of russia ’ s operation. in recent years, we worked on solving a number of entrenched problems and were partially successful in eliminating the consequences of external shocks. for example, we removed weak and unscrupulous players from the financial market, completed building the necessary elements of the national infrastructure of the financial market, and transitioned to inflation targeting. now that the economy and the financial system have become stable, we have more opportunities to focus on development issues. we will prioritise competition issues, new technologies, financial accessibility, developing long - term money instruments and the capital market. indeed, what we can do together to foster development of the financial sector and what the financial sector can do to foster development of the economy will be the subject of our discussion here at the congress. i look forward to the productive work and successful outcomes we will share. thank you for your time. 11 / 11 bis central bankers'speeches

flow. as a result, prices for tourism services soared, which also sped up inflation in june. furthermore, may — june recorded a surge in prices for such vegetables as cabbage, potato, carrot and beetroot, which was because 2020 harvest stocks started to end before the new harvest supply. however, the contribution of such one - off factors to overall inflation is smaller than that of steady factors. the increase in prices for these everyday products is very noticeable and significantly impacts inflation expectations. june and the first half of july showed the first signs of weakening inflationary pressure, this is still not enough to speak of a steady decline in the inflation rate. in july, households ’ inflation expectations continued to rise. in these conditions, even one - off factors might have a longerlasting impact due to their secondary effects. to prevent this, it is essential to create conditions that would encourage the propensity to save. for this, we need higher interest rates. we should not tolerate high inflation expectations in order to prevent their anchoring at this high level and avoid a more significant increase in the key rate that would be needed further on in this case. the second topic is the economy. according to our estimates, economic growth sped 1 / 3 bis central bankers'speeches up considerably in the second quarter. high - frequency indicators show that russia ’ s economy has bounced back to its pre - crisis levels. output in two - thirds of the major industrial sectors already exceeds pre - crisis levels, and this upward trend continues. oil production has not restored yet. output has also not recovered in international air transportation and hotel and restaurant business. however, this was due to remaining anti - pandemic restrictions, rather than insufficient demand. moreover, the pandemic drastically affected the structure of demand and supply. in my previous statement, i mentioned the changes caused by the transfer of a significant portion of employees to work from home, as well as the elevated level of inventories now formed by companies. replenishing their inventories, companies substantially increased their demand for commodities worldwide. russia is a major producer of key commodities. high demand for russian exports spurs economic growth this year. as companies complete their inventories, the effect of this factor will be tapering off gradually. the growth of oil export quantities will also be supported by the easing of the opec + oil production cuts in response to the recovery of demand. taking this into consideration, we have raised the oil price path in our forecast by 5 us dollars