Siluanov said about the overheating of the economy in Russia

Overheating of the economy is observed in Russia, said the head of the Ministry of Finance Anton Siluanov at the St. Petersburg International Economic Forum (SPIEF). According to him, this is evidenced by the growth of the pace of this process.

“If we continue to increase spending (budget.— “B”), where will we come to? Overheating. Overheating elements are already visible. High inflation. We have inflation now about 5.9%, if we take a year-on-year, it is higher than our target (4%), ”the minister said.

He believes that inflation can lead to depreciation of costs (of the state and citizens.— “B”), depreciation of money, social payments, salaries. According to Mr. Siluanov, the situation should be normalized quickly.

“It is obvious that both budgetary and monetary policy should return to their normal position. We understand very well that the further we drag out with this, the more difficult it will then be to get out of the super-soft policy – both the budgetary policy and the monetary policy, ”he concluded.

Earlier at the same session, the head of the Central Bank of Russia Elvira Nabiullina 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.