Spike in inflation in Russia in December might not be, says Deputy MAYOR

Spike in inflation in Russia in December might not be, says Deputy MAYOR


Weekly inflation, according to forecasts of Deputy Minister of economic development, the end of the year will decline. And constitute rather of 0.1% instead of 0.2%.

MOSCOW, 6 Nov. Russia may avoid a spike in inflation in December, while weekly inflation up to the end of the year will most likely be at the level of 0.1%, stated to journalists the Deputy head of the Ministry of economic development Alexei Vedev.

“Within the fall of final demand it is not the fact that we must have the jump in December (the inflation — ed.). We conducted a study on developed countries: it is clear that even deflation has been observed due to new year’s Christmas sales. So we do not hurry to change now inflation,” he said.

“There is a problem is that for the first time in 17 years, falling real incomes, wages. So it’s safe to say that inflation will accelerate in December, not may. That is a very large demand constraints,” said Vedev.

“Weekly inflation up to the end of the year, I think, will decline. Rather of 0.1%, 0.2%,” — said Deputy economic development Minister.

The lower limit of the inflation forecast by the end of 2015, according to medeva, will amount to 12.2%, the top in the Ministry have not yet determined. “The Finance Ministry said that 12.4 per cent”, he said.