Econ minister says inflation may slow down to below 3% in 2020

MOSCOW, Dec 10 (PRIME) -- Russia’s annual inflation may slow down to 2.5% in January–March and end up below the target level of 3% in the entire 2020, Economic Development Minister Maxim Oreshkin told reporters on Tuesday.

“We see the risks of inflation deceleration to below our basic scenario (of 3%),” he said.

Oreshkin added that inflation is to reach 3–3.1% in 2019, as compared with the previous forecast of 3.8%.

“We expected, as you can remember, 3.8% as of the end of the year, and will now have 3–3.1%. We will reach 2.5% in the first quarter. And as far as we see a negative impulse from (the consumer lending dynamics)… there are no sources for inflation,” he said.

“It is clear that there is no growth in lending, there are no possibilities for inflation. Now we have a situation of falling consumer lending. As for the mortgage market, it also declines despite the reduced interest rates. Corporate lending is at a low level. This means that there is no monetary impetus for the economy at all.”

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