Russia’s deputy PM does not expect inflation to exceed 4% in coming years

Inflation in Russia is not going to exceed 4% in coming years, Deputy Prime Minister Arkady Dvorkovich said Monday.

"Russia has been a country with high inflation over the past twenty years. This year the level of 4% has been reached for the first time. This is still relatively high according to European standards, but the lowest level in our history. Hopefully, inflation (in Russia) will be consistently below 4%. This allows to lower interest rates gradually in order to avoid widening the inflationary spiral all over again, but makes it possible to attract credit resources and investment," he said.

Russia’s Economic Development Minister Maksim Oreshkin said earlier that inflation might reach 3.8% by the end of this year. The Central Bank’s key target within its inflation targeting policy is to achieve 4% by the end of 2017. The regulator considers this target achievable as specified in the base case macroeconomic scenario of its monetary policy.