Ministry of Economy allowed inflation in Russia to be higher than forecast

Inflation in Russia at the end of 2021 may turn out to be higher than the forecast of 4.3%, the Ministry of Economy will clarify the forecast in July. This was announced by the head of the department Maxim Reshetnikov in an interview with the Financial Times, it was published on the department’s website.

“We believe that it will be, perhaps, slightly higher than our forecast, we will update it in July. But at the same time, this is an understandable risk, we understand how to handle it, we treat it attentively, ”said Mr. Reshetnikov.

The head of the Ministry of Economy noted that the past crisis has taught the Russian authorities a lot. “First of all – the implementation of large large programs to support people and small businesses. In the overwhelming majority, we helped small and medium-sized businesses. And the recovery of employment, which we are now seeing, the recovery of jobs, is largely due to these large programs implemented by the state, “he added.

Maxim Reshetnikov called this easing of budgetary and monetary policy unprecedented for Russia. “Therefore, the pace of recovery is now significantly higher than what we expected. This does not mean that we will now run and correct the numbers, because the covid is with us, unfortunately, the situation does not allow us to completely relax. Nevertheless, we are recovering in terms of economic dynamics, ”he said.

Earlier, the head of the Central Bank of Russia Elvira Nabiullina at the St. Petersburg International Economic Forum (SPIEF) said that inflation in Russia is becoming stable. According to her, the acceleration of inflation was preceded by temporary factors: an increase in world prices for food, raw materials and exchange goods, the effect of a weakening of the exchange rate.

About the results of the SPIEF – in the material “b”.