Peskov Explained Inflation Rise Forecast by General Trends

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According to Russian President Dmitry Peskov’s press secretary, the rise in inflation prediction is related to post-crisis instability and global tendencies. Previously, the Ministry of Economy upped its 2021 inflation prediction from 5.8 percent to 7.4 percent, Kommersant reports.

“Russia cannot exist in a closed system; it is a participant in the global economy. And broader trends on worldwide markets, such as post-crisis volatility and so on, are just price oppression. Unfortunately, we will never be completely free of its effect.”

“We have been able to considerably amortize this process, but no one nation can entirely avoid it,” Peskov said in response to a question from Kommersant FM about why the inflation problem cannot be fixed in the Kremlin’s opinion.

As previously stated by the director of the Ministry of Economy, Maxim Reshetnikov, the major contributor to the rise in prices is the increase in product prices. In light of this, the government has devised policies to combat food inflation, he noted.

At the same time, the Ministry of Economy maintains its inflation and other parameter estimates for the years 2022–2024. By the end of 2022, Russia is anticipated to be back at 4%.