Minister of Economic Development and Trade Elvira Nabiullina
Photo: Êèðèëë Òóëèí
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Inflation Heading over 12% for the Year
Minister of Economic Development and Trade Elvira Nabiullina admitted yesterday that it will be extremely difficult to keep inflation under 12 percent this year. Exact figures will be available only in January. Inflation was 10.6 for the first 11 months of the year and 0.5 percent in the first ten days of this month.
Russian President Vladimir Putin's initiative to raise the salaries of employees paid from the federal budget by 14 percent on February 1 of next year (not by 7 percent on September 1 as previously planned) and to raise military pay 18 percent on the same date has led economists to raise their inflation forecasts for next year. Many economists now say that next year's inflation will be no less than 11-13 percent, with no less than 10-percent inflation in 2009.
Putin told the State Council yesterday, “Of course, we all want it – the government wants it, the governors want it, the regional leaders of the Russian Federation want it – we all want to develop at a faster pace than we are and, of course, we are doing it so that the prosperity of the citizens grows at a faster pace, but that has to be done sensibly. If we can beat inflation, we'll really toot our horns. Therefore, we should approach the fulfillment of these tasks in an adult manner, responsibly, seriously, without any populism.”
www.kommersant.com
All the Article in Russian as of Dec. 20, 2007
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