The inflation rate in Russia did not change after the state provided support to the citizens of the country amid the pandemic. This was announced on Monday, May 31, by the First Deputy Prime Minister of the Russian Federation Andrei Belousov in an interview with RBC.
“In conditions when earnings sagged, I think that the fact that we distributed money did little to improve inflation,” Belousov said.
According to the politician, the Russian authorities predicted the start of an inflationary wave in 2021, but this happened around October 2020, when prices for grain, mineral fertilizers and metals went up. Belousov stressed that the United States and Europe, against the backdrop of the crisis and pandemic, sharply weakened monetary policy.
“This is the fork that emerged and caused the rise in prices. Moreover, many European countries are accustomed to zero inflation, in some places there was even deflation. Now in many countries inflation is about 2%, and for them 2% is about 10 in our country, ”the politician said.
He predicted that inflation in the US by the end of this year will be around 4-5%.
“This is an unprecedented story for them, although they still give lower marks,” Belousov concluded.
On May 17, Georgy Ostapkovich, director of the HSE Center for Conjuncture Research, in an interview with Izvestia, noted that in Russia inflation by the end of the year could reach 5.2% under a negative scenario, 4.7% under a conservative scenario, and 4.5% under a positive scenario. %. He noted that the outcome will depend on the route of the spread of the coronavirus, on what consumer confidence will be among the population.
On April 23, the Central Bank raised its forecast for inflation in 2021 to 4.7-5.2% from 3.7-4.2% and announced its expectation to return to the 4% target in mid-2022 and keep it at this level in future.