21 Feb 2023 13:37

Inflation in Russia will be near 4% target in Q2 - Putin

MOSCOW. Feb 21 (Interfax) - Inflation in Russia will be close to the 4% target in the second quarter of 2023, President Vladimir Putin said during his address to the Federal Assembly.

"According to estimates, inflation in Russia will be near the target level of 4% as early as the second quarter of this year," he said.

"Given the positive dynamics of this and other macroeconomic parameters, objective conditions are emerging for lowering long-term lending rates in the economy, which means that credit for the real sector should become more accessible," Putin said.

Annual inflation in Russia could fall below the 4% target in the spring of 2023 due to the base effect, external restrictions having caused consumer price growth to spike in March-April 2022, the Central Bank said in a Monetary Policy Report. Inflation could be at its lowest in April 2023, the report said.

The Central Bank forecasts 5-7% inflation for 2023. The Economic Development Ministry is forecasting 5.5% for 2013.