Inflation not to reach 8% in Russia, minister says

Photo: Inflation not to reach 8% in Russia, minister says
 / Business News

Baku, Azerbaijan, June 2

By Emin Aliyev - Trend:

In the first half-year the consumer inflation in Russia will not reach eight percent in annual terms, Russian Economic Development Minister, Alexei Ulyukayev told reporters in Baku on June 2.

Previously, the analysts at the Russian Savings Bank (Sberbank) forecasted an eight percent growth in the consumer prices in Russia in June.

The inflation is accelerating: between May 20 and May 26, the prices rose by 0.3 percent compared to 0.2 percent the previous week.

Starting from early 2014 the inflation stood at 4.1 percent - over one percentage point higher than a year earlier.

In annual terms the inflation reached 7.5 percent at an annual forecast of 5.5-6.5 percent from the Economic Development Ministry of Russia.

Russian media outlets quoted the HSBC Chief Economist for Russia and CIS, Alexander Morozov as saying that the main reason for growth in the prices is the preserved impact coming from the Russian ruble's weakening.

The second factor is the increase in prices of certain categories of imported goods due to restrictions on imports, primarily on pork imports, according to Morozov.

"Our estimates show that the inflation will stand at around 7.7-7.8 percent, while in July the consumer price inflation will decline," Minister Ulyukayev stressed.

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