Putin predicts that inflation by the end of 2015 will amount to 11.9-12%

SOCHI, October 22. Russian President Vladimir Putin predicts that inflation by the end of 2015 will amount to 11.9-12%.

“Last quarter we have a budget deficit amounted to just 1.5%, the inflation rate is declining: last month was 0.5 per cent, by the end of the year it would be substantial – somewhere of 11.9-12%,” – said the head of state, speaking at the meeting of the discussion club “Valdai”.

He said: “We believe that in subsequent years, it (inflation) will tend to decrease”. “Rather, the trend has already begun. We believe that we will be able to hold her and we will strive to maintain macroeconomic figures are very conservative with respect to budget spending,” Putin said.

The head of state acknowledged that “real wages in the moment a little bit kissed”. “I am confident that in time it with the growth of the economy will grow”, – said the President.

According to him, the decline in real wages leads to a shift towards a more targeted support in the social sphere. Putin said that the appropriate changes in the near future will be taken at the legislative level.

Putin believes that the Russian economy will finally overcome the crisis and will not spend accumulated “strategic reserve”.

“We are confident of a positive trade balance holds, no matter what difficulties and problems, we have a fairly high gold and currency reserves of the Central Bank – 370 billion dollars, we have a good government reserves: one Fund 70, in another Reserve Fund – 74 billion,” – said the head of state.

He admitted: “Yes, we build the tactics of economic development that we them a little (reserves) will eat up, but still, even by the end of 2018 must remain reliable, the government reserves, except the reserves of the Central Bank”.