Consumer price index grew 0.5 percent October 1 to 8, CBR CEO Sergei Ignatiev, on the photo, announced October 11, 2007.
Photo: Mikhail Razuvaev
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The Great October Inflation
Consumer price index gained 0.5 percent in the first week of October and reached the government’s annual target of 8 percent ahead of schedule. The analysts forecast 10-percent inflation by this year’s result, but don’t predict transition to two-digital inflation from 2008.
Consumer price index grew 0.5 percent October 1 to 8, CBR CEO Sergei Ignatiev announced yesterday. “Unfortunately, it is unusually high for the start of October. Judging by early October, the inflation is bound to exceed the benchmark of 8 percent,” the top manager forecasted.
Indeed, to match the forecasted 8 percent, the inflation is to give way to deflation, which has never happened in Russia at the year-end.
Consumer price growth will not only surpass the official outlook of 8 percent. It will be evidently higher than last year’s 9 percent, Economic Development Minister Elvira Nabiullina declared Wednesday. Neither in Economic Development Ministry nor in Central Bank of Russia (CBR), they are particularly eager to come up with the annual outlooks, reasoning that making these forecasts isn’t easy in the environment of volatile markets of foodstuff.
CBR, for instance, always reiterates that its competence doesn’t extend beyond monetary inflation. Ignatiev said yesterday that the bank would take no extraordinary actions in the wake of the price growth. “Monetary policy has been too tough even without it, and stiffening it in addition by the ruble appreciation would be unnecessary,” Ignatiev explained.
According to Ignatiev, the government currently elaborates a few decisions on the tariff rates for imports of dairy and grain to contain inflation. “I hope these actions will be efficient and the price growth will go down,” the official said.
www.kommersant.com
All the Article in Russian as of Oct. 12, 2007
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