In Eldorado shopping center of household appliances
Photo: Dmitry Lebedev
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Russia Won’t Contain Inflation at 7 Percent Next Year, World Bank Said
Russia’s authorities won’t contain inflation at the targeted value of 7 percent in 2008, the World Bank forecasted.
The 2008 inflation will reach 7.5 percent in Russia, forecasted World Bank senior economist Paloma Anos Casero, specifying the capital inflow was the key inflation factor for Russia’s economy.
The capital inflow affects the inflation much greater than the increase in budget costs, she concluded, predicting that the infuence of this factor would be rather significant in 2008, and the inflation would be above the target of Russia’s government.
As to this year’s inflation, it is likely to reach 11 percent, the expert said, adding it could be even higher actually.
This year’s forecast of Russia’s Economic Development Ministry echoes the World Bank conclusion. Andrei Klepach, for instance, acknowledged past week that inflation would be at least 11 percent in 2007.
The initial target of the government was just 8 percent for this year, but the prices were truly skyrocketing in late September and early October, prompting economists to upgrade the outlook.
www.kommersant.com
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