Cbanker says inflation pressure rises in Russia due to VAT hike

MOSCOW, Jul 9 (PRIME) -- The inflation pressure has slightly increased on the back of the government’s plans to raise value added tax, Central Bank First Deputy Chairwoman Ksenia Yudayeva told the State Duma, parliament’s lower house, on Monday.

“We can see a difference in our and the government’s inflation assessments for this year. The government projects 3.1%, while we expect 3.5-4%. We believe that inflation pressure has somewhat increased. We may see the influence of expectations of new tax measures introduction,” she said.

“Next year’s (inflation) estimates are very close. We project 4-4.5% and the government 4.3%.”

Earlier in June, the State Duma approved a bill raising VAT to 20% from 18% in the first out of three required readings.

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