Ruble devaluation's contribution to yearly inflation estimated at 4 percentage points - Ulyukayev
BEIJING. Nov 8 (Interfax) - The ruble devaluation's contribution to yearly inflation in Russia can be estimated at four percentage points, Economic Development Minister Alexei Ulyukayev said.
"If we have 35% devaluation in our [bi-currency] basket, and more than 40% on the dollar, this means that we will pay for it about four percentage points of consumer-price inflation this year," Ulyukayev told journalists on Saturday.
"It [devaluation] affects [inflation] directly and undoubtedly. Unfortunately, nobody can cancel the carryover effect, and it works. Unlike in the previous periods, it seems to me that the time lags have become shorter. It has a quicker effect, and it is absolutely asymmetric: the weakening of the ruble accelerates inflation, and its strengthening doesn't affect it at all," he said.
The peak of inflation is expected in February-March 2015, after which consumer price growth should start slowing down, Ulyukayev said.
Asked about the 2014 inflation, Ulyukayev said it would be at least 8.5%. "We have 8.5% date-to-date now, and it is unlikely to be lower," he said.
The tariffs will be adjusted to inflation in 2015 based on the official 2014 inflation forecast of 7.5%, Ulyukayev said.