17 Jan 2023 15:10

Inflation in Russia could fall below 4% target in Q2 - Putin

MOSCOW. Jan 17 (Interfax) - Inflation in Russia could fall below the 4% target in Q2 2023, Russian President Vladimir Putin said at a meeting on economic issues.

"Inflation could fall below the target level of 4% as early as the second quarter of this year," he said.

"We're expecting [inflation] to fall to something like 5% for the first quarter, then in the second quarter it could be even 4%," he said.

He said lowering inflation was fundamentally important for real incomes and for the economy as a whole. "Predictable, subdued price dynamics is a key factor for decision making to increase investment activity, the accessibility of loans for business and the real sector. Inflation directly affects the incomes of citizens," Putin said.

He said inflation was 11.9% in 2022, less than the government and Central Bank had forecast.

The official Economic Development Ministry inflation forecast for 2022 was 12.4%. Economic Development Minister Maxim Reshetnikov said in early November that inflation for the year could be below the ministry's current forecast - in the range of 12.0%-12.4%. The Central Bank forecast 12-13% inflation for 2022.