Decreasing inflation poses certain risks – President


Vladimir Putin attended the plenary session of the 11th Russia Calling! investment forum that focused on building bridges over the waves of de-globalization, presidential web page reports and cites Putin as saying that “Despite a decline in the global growth rates, the economic situation remains positive in Russia. GDP increased by 2.3% last year. The figures for the first nine months of this year are rather modest, only 1.1%. However, the Economic Development Ministry reported that growth accelerated in the second half of the year.”

According to the President, unemployment is decreasing and its rate was 4.6% of the economically active population in January to September which is the lowest figure in Russia’s modern history. The consumer inflation is currently 3.6%, and may be 3% or lower at the beginning of next year.

“Inflation is decreasing faster than expected, and that poses certain risks for economic revival, and for the aggregate demand dynamics. So we will keep this issue under control,” he said. “In general, the stabilization of prices is a great achievement for Russia, and the result of the government and the Central Bank’s consistent and systematic work, and it certainly opens up new opportunities for advancing the pace and, most importantly, the quality of economic growth.”

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