Russian govt expects inflation not to exceed target level of 4% in 2021
MOSCOW. Jan 14 (Interfax) - The Russian government maintains budgetary and debt stability as its macroeconomic priorities, and it expects inflation to be within the target level of 4% in 2021, the country's Prime Minister Mikhail Mishustin said during a video greeting to the participants of the Gaidar Forum.
"In the area of macroeconomics, our priorities will continue to be maintaining fiscal and debt stability with reasonable amounts of borrowing on the market and maintaining low inflation. The [inflation] figure exceeded the target level last year. We expect it to return to its previous boundary limit by the end of this year," the prime minister said.
"The current situation overall is just a deviation rather than a departure from the trajectory of sustainable economic growth. We still have much to do; however, particular attention will be paid to restoring the economy as well as household incomes," Mishustin stressed.
"Last year, our economy reacted considerably more moderately to the challenges associated with the spread of infection than a number of other countries. Following a decline in the second quarter, it has been gradually recovering, and already by the end of this year, we expect to have climbed into positive territory and achieved sustainable growth," Mishustin said.
As previously reported, Russia had inflation of 4.9% in 2020, which significantly exceeded the government's forecast of 3.8% as well as the target level of 4% of the Central Bank of Russia (CBR).
The government's official inflation forecast for 2021 is 3.7%.
The consensus forecast of analysts polled by Interfax at the end of December is inflation of 3.5% in 2021, which indicates the prevalence of disinflationary factors in 2021.
The CBR's inflation forecast for 2021 is 3.5%-4%.