24 Jul 2009 12:02

Inflation in Russia likely to be within 11% in 2009

BARVIKHA, Moscow region. July 23 (Interfax) - Inflation in Russia in 2009 is likely to be lower than the 13% target, but it is still too high, said Russian President Dmitry Medvedev.

"Inflation this year might be lower than we expected. It may not be 13%, but perhaps 10%-11%. But this is still too much. Inflation should be driven into the range of 4%-6%," Medvedev said at a meeting with the United Russia party leadership and young parliamentarians representing this party on Thursday.

Acceptable lending terms cannot be created without lowering inflation, he said.

"If we push inflation to 4%-6%, the financial and credit system will be efficient. There aren't any developed nations today that have credit rates of 15%-20% like us," he said.

Other countries that are being impacted by the crisis are currently seeing deflation, he said.

"We have enormous inflation. It isn't possible here to argue with the finance minister, with whom almost everyone argues: with such inflation, it will be difficult to issue normal loans," he said.

"We should make consistent efforts to lower inflation," he said. Inflation in Russia has begun to slow given the slump in production volumes, he said.