Economic minister sees Russia’s inflation at 3.9–4% in 2018

MOSCOW, Dec 10 (PRIME) -- Russia’s inflation will amount to 3.9–4% in 2018, overshooting the Economic Development Ministry’s forecast of 3.4%, Minister Maxim Oreshkin told reporters on December 8 at a meeting of the ruling party United Russia.

The Federal State Statistics Service said earlier that the consumer price inflation index amounted to 3.4% in January–November. The central bank expects inflation to reach 3.8–4.2% this year.

“Our forecast is 3.4%, and it is obvious that it will be overshoot. What we see now is that the figure will amount to about 3.9–4% as of the end of the year,” he said.

He also said that the ministry’s forecast for the average annual oil price of $63 per barrel in 2019 is relevant, and it takes into account the recent decision of OPEC and non-OPEC states to cut their oil production further.

The decision is unlikely to change any significant long-term impact factors for the oil price, this is an issue of cutting short-term volatility.

“The long-term price depends on long-term costs, dynamics of the global economy, demand for energy, and the structure of demand. This short-term change in production may reduce excessive and periodic up-and-down fluctuations, smoothing up the market and making it more stable and predictable,” he said.

On December 7, OPEC and non-member participants agreed to cut production by 800,000 barrels per day for OPEC and 400,000 barrels per day for non-OPEC states, including 230,000 barrels per day for Russia with the October level set as the base for calculations.

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