From left to right: Russia's Regional Development Minister Dmitry Kozak, Agriculture Minister Alexei Gordeev, Finance Minister Alexei Kudrin, Orenburg Region's Governor Alexei Chernyshov and Kalmykia's President Kirsan Ilyumzhinov
Photo: Kirill Tulin
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Inflation Follows the Summer Schedule
Russia’s statistics authority Rosstat has confirmed the inflation acceleration in March – the growth in consumer prices reached 1.2 percent (4.8 percent from early this year) and the basic inflation was 1.1 percent (3.2 percent). The economists see no signs of forthcoming slowdown, predicting the growth to survive at least till August or September.
Rosstat confirmed yesterday its preliminary conclusion about accelerated inflation in March. The index of consumer prices stepped up 1.2 percent during the month and inflation reached 4.8 percent if calculated from the year-start. The minimal food basket led the price growth, having gained 2.7 percent to 1,993.5 rubles vs. February. Its price went up 10.6 percent if calculated from early this year.
The basic index of consumer prices (less seasonal factors and changes in tariff rates controlled by the government) stepped up 1.1 percent in March and 3.2 percent from early this year. Taken for January through March of this year, nearly all indices showed the stable growth vs. past year’s indicators. Judging by statistics, speaking of any stabilization or the more so slowdown in inflation would be too optimistic.
There is a prerequisite for the moderate slowdown, but the effect could be noticed no sooner than in the second half of the year. Today’s hope is the reduction in growth of money supply (M2). The rates of M2 were steadily above 50 percent year on year in the middle of 2007, reaching 60 percent as of June 1, 2007. But they are continuously going down ever since. The annual growth was just 47 percent as of March 1, 2008. It is yet notably above 2005, when the rates dropped below 40 percent, sinking to 29 percent in February of 2005. The inflation slowed down in a few months after it in line with economic theory.
www.kommersant.com
All the Article in Russian as of Apr. 08, 2008
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