Logo
  Saturday, June 25, 2022
Sign-In  |  Sign-Up  |  Contact Us  |  Bookmark 

In 2004 inflation is most likely to grow higher than it was forecasted by the government
"In 2004 inflation is most likely to grow higher than it was forecasted by the government," Russian Minister of Finance Aleksei Kudrin told Cabinet ministers. In its forecast the Ministry of Economic Development and Trade had set inflation rates at 10%. According to the minister, prices were expected to grow as related to grain and petrol, however a 1-2% growth of meat prices was beyond any expectations. Measures have been taken to lower inflation, which must take effect in 2005, Mr. Kudrin said. The official does not think inflation will grow higher than 8.5% next year. The minister considers the policy of decreasing inflation to 3-4% by 2008 as necessary. But at the same time, this must not be implemented by means of the reserves of the stabilization fund. The ruble's effective exchange rate is to grow by 7% year on year, the indicator currently standing at 5%, the Minister of Finance stated. "This is a good reserve for the economy," the official pointed out. The dynamics of the ruble was quite a surprise, which took place against the backdrop of the dollar's drop against the euro. Central Bank of Russia has adjusted the monetary policy, thus creating a base for next year, the minister remarked. The capital outflow turns out to have had a positive impact on the macroeconomics too. "The trend has also improved the situation of the balance of payments, causing no ruble exchange adjustments," the minister said. "Although capital outflow is not a good trend, particularly in volumes larger than expected, it was favorable in terms of macroeconomic indicators," Mr. Kudrin stressed.
Print In 2004 inflation is most likely to grow higher than it was forecasted by the government Bookmark In 2004 inflation is most likely to grow higher than it was forecasted by the government

Related News   
OctNovember 2004Dec
MoTuWeThFrSaSu
25262728293031
1234567
891011121314
15161718192021
22232425262728
293012345