The head of the Ministry of Economy does not consider the rise in inflation in recent months critical

Russian Minister of Economic Development Maxim Reshetnikov believes that the rise in inflation in recent months is not critical. He noted that core inflation in annual terms remains at 5.5%, if you remove “all sorts of fruits, gasoline, etc.”

“Inflation, yes, it is, of course, higher than the targets, but core inflation, if we remove all kinds of fruits, gasoline, etc., it will be 5.5% (in annual terms in October.— “Ъ”). But in general, it has been growing, unfortunately, in recent months, but not so critically,” Mr. Reshetnikov said at the VTB forum “Russia Calling!”

The minister commented on the opinion that the labor market is a limiter for economic growth. In his opinion, Russia underestimates the flexibility of the labor market, just as previously “they underestimated the flexibility of our economy and stability.” He noted an increase in labor productivity and “quite large reserves” – “a lot of young people” are entering the market. “We understand that the labor market is not some limitation that we cannot overcome. It is also flexible and we are also moving,” added Mr. Reshetnikov.

The growth of lending in the Russian Federation is not somehow “exorbitant,” the minister believes. He noted that a large increase was ensured by the replacement of Western financing, in addition, the need for working capital increased in connection with servicing Russian exports.

On the impact of tightening monetary policy on inflation – in the material “Kommersant” “Not so much expensive, but long”.

Leonid Uvarchev