Too low inflation worried the authorities

Demand stagnation has become one of the key economic problems in late 2022 – early 2023. Last week, Minister of Economic Development Maxim Reshetnikov made a report on this issue at a meeting with Vladimir Putin. This was reported to Vedomosti by two sources close to the government, who are familiar with the meeting, the information was confirmed by an interlocutor close to the presidential administration. According to them, the position presented by the Ministry of Economic Development expressed concern about the stagnation of demand and low inflation illustrating this problem. Price increases since September last year have been well below 3%, while live cash register data show a decline in demand in real terms year-on-year. The key task for 2023 was the restoration of demand, the main indicator of which in the current situation is inflation, the sources said. In other words, according to the Ministry of Economy, it is necessary to achieve the inflation target (in the macro forecast, the agency expects prices to rise at the level of 5.5% this year, the target range of the Central Bank is 5-7%. – Vedomosti).

According to them, the position presented by the Ministry of Economic Development expressed concern about the stagnation of demand and low inflation illustrating this problem. Price increases since September last year have been well below 3%, while live cash register data show a decline in demand in real terms year-on-year. The key task for 2023 was the restoration of demand, the main indicator of which in the current situation is inflation, the sources said. In other words, according to the Ministry of Economy, it is necessary to achieve the inflation target (in the macro forecast, the agency expects prices to rise at the level of 5.5% this year, the target range of the Central Bank is 5-7%. – Vedomosti).