Annual inflation in Russia expected to decline to 3% in early 2020

TASS Russian News Agency | Aug 23, 2019 at 3:31 PM

/Update/

KYZYL, August 23. /TASS/. Inflation in Russia is expected to decelerate to 3% in annual terms as early as in the first quarter of 2020, Minister of Economic Development Maxim Oreshkin told reporters on Friday.

"It will be definitely below 4% [in 2019 - TASS]; we are currently making a final review of figures. We feel that we can closely approach 3% as early as in the first quarter of 2020. We see very strong disinflation trends and shortage of demand in the economy at large. Therefore, the disinflation trend will be very strong, even despite softening of monetary policy already undertaken by the Central Bank," the Minister said.

The Ministry of Economic Development will make a minor revision of ruble rate and oil price forecasts for 2019, Oreshkin said. "Our revision will be minimal. If you look at our spring forecast, we assumed about 66 rubles per dollar in the second half of the year," he said. The oil price outlook will also see minor revision, the Minister added.

The Ministry will prepare a revised macro forecast with inflation outlook for this year to be below 4% (4.3% is in the current version), Oreshkin said earlier.