Minister: Falling capital outflow may cap Russian inflation

MOSCOW, May 13 (PRIME) -- Russian inflation may fall to 4%, or even lower, earlier than expected because of falling capital outflow and a high propensity for saving, Economic Development Minister Alexei Ulyukayev said in an interview to Rossiya 24 TV channel on Friday.

“I do not rule out that we may reach 4% or even below 4% earlier than expected,” Ulyukayev said.

According to a ministry’s baseline forecast, Russia’s inflation will slow down to 4% by the end of 2019.

As seen in central bank’s data, net private capital outflow from Russia decreased more than 70% on the year to U.S. $12.8 billion in January–April. In 2015, Russia’s capital outflow shrank 62% on the year to $58.1 billion.

According to the Federal State Statistics Service, the consumer price inflation index reached 2.7% since January 1 as of Tuesday.

End