Economic Development Minister German Gref (left) and Deputy Prime Minister Alexander Zhukov are competing for the most accurate inflation prognosis.
Photo: Grigoriy Sobchenko
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Two Ministers Come Up with Different Inflation Forecasts
Economic Development and Trade Minister German Gref and Deputy Prime Minister Alexander Zhukov have voiced different inflation estimates for February. Mr. Gref said prices grew 0.8 percent, while Mr. Zhukov estimated cited the mark of 1.1 percent. The Federal Statistics Agency is to publish official data on within two days. Economists, meanwhile, point out to pre-election risks and the fact that the low inflation is largely due to state regulation.
Speaking at Troika Dialog’s annual conference in Singapore, Russia’s economy chief German Gref said prices in Russia were up 0.8 percent in February. With the January inflation at 1.7 percent, the inflation in the two months is 1.6 percent lower than in the first two months in 2006, the minister noted. In the meantime, Deputy Prime Minister Alexander Zhukov reported at a meeting with President Vladimir Putin that prices climbed 1.1 percent last month, to 2.8 percent in January-February.
The Federal Statistics Agency is to publish its data within two days. Mr. Gref has revealed an estimation of his ministry while Mr. Zhukov may have voiced early reports from the statistics agency. Analysts expect the final inflation rate of the month at about 1 percent.
In any case, inflation is significantly lower this year than in 2006, though international experts account this achievement for heavy state regulation. “In 2007, the limit growth rate for utilities tariffs was set at 15 percent, against 20 percent last year,” Deutsche UFG says in a recent report. “This factor alone set inflation in January 0.5 lower.”
The Economic Development Ministry expects consumer prices to go up 8 percent this year, compared to 9 percent in 2006. Alexey Ulyukaev, deputy chairman of the Central Bank, has recently said that inflation could be below 7.2 percent. The plans, however, may not come true because of the coming presidential election which will inevitably entail higher budget expenses.
www.kommersant.com
All the Article in Russian as of Mar. 06, 2007
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