Putin demanded to prevent neither acceleration nor excessive deceleration of inflation
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Russian President Vladimir Putin, during a meeting with the government, said that the dynamics of domestic demand should correspond to inflation targets. The head of state stressed that it is important to prevent either the acceleration of inflation or its excessive slowdown.
“The key indicator of economic development, the quality of our economic policy is the dynamics of citizens’ incomes. Ultimately, it is our goal to make people’s lives better. By the end of March, inflation will fall below 4%. According to some estimates, it will continue to slow down,” the president said.
Vladimir Putin noted that due to the slowdown in inflation, real disposable incomes of Russians should increase. “Incomes of citizens in the country as a whole began to grow again in real terms. Yes, these are still very modest figures, and I will not reproduce them, but still they are,” the head of state said.
As an example, Vladimir Putin pointed out that real wages have grown to 0.6% since October 2022, and disposable incomes of citizens in the fourth quarter increased by 0.9% compared to the same period in 2021. “Of course, this is very little, but it is still a move in the right direction,” he concluded.
According to the estimates of the Ministry of Economy, by March 20, the inflation rate in annual terms decreased up to 5.99%. Inflation expectations of Russians in March decreased to 10.7% from 12.2% in February, inFOM reported, citing its research for the Bank of Russia. According to the regulator’s forecast, annual inflation will temporarily fall below 4% in the coming months due to the high base effect of 2022. In the baseline scenario, inflation in Russia will drop to 5-7% in 2023, and 4% in 2024.
Read more about inflation expectations in the publication “Kommersant” “The Central Bank is still beeping”.
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