The rate of inflation growth by the end of this year will exceed 8%. This was announced to reporters by the head of the Ministry of Economic Development Maxim Reshetnikov on Wednesday, December 8.
“It is clear that by the end of 2021 inflation will be in the range of 8% plus. I don’t want to talk about specific figures, since the results of the year will soon be out and everything will become clear, ”the minister said.
Reshetnikov explained that thus the rate of price growth would exceed both the official forecast of the Ministry of Economic Development – 7.4%, and the expectations of the Bank of Russia – 7.4-7.9%.
“Realizing this, in September-October, decisions were made to index benefits for actual inflation and protect the population from additional price increases,” the head of the department stated.
He explained that the rise in the price of travel services was the reason for the surge in inflation in November. In addition, he pointed out that world inflation continues to accelerate, and the rate of price growth is increasing in almost all countries.
Earlier on the same day, the Central Bank published the Research and Forecasting Department’s “What Trends Talk About” bulletin, which states that the growth of consumer prices in Russia in November, taking into account the seasonality, slowed down, but remained high. The regulator added that the ongoing monetary policy (MP) of the Central Bank will limit excess demand growth, and the gradual elimination of logistics problems and the expansion of production will gradually increase the supply of goods and services during 2022.
Central Bank analysts expect that the strengthening of the effect of the normalization of the budgetary and tightening of monetary policy will lead to a decrease in inflationary pressures and a slowdown in inflation to 4.0-4.5% by the end of next year.
The day before, Russian President Vladimir Putin said at a meeting on economic issues that the main problem of the Russian economy and residents of the country today lies in the growth of inflation, which at the end of November amounted to 8.4%. He stressed that in 2022 it is necessary to ensure its return to the level of 4%. The President noted that at the moment the government is taking “energetic measures.”
On December 3, the Ministry of Economic Development told Izvestia that the main factors behind the rise in prices in recent months were the acceleration of world inflation and the limited supply of some goods on the domestic market. They believe that the dynamics of inflation in the medium term will primarily depend “on the scale of the influence of external factors, including the timing of the stabilization of energy prices in Europe, the cost of transportation, and the situation in key commodity markets.”
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
