Putin: Russian government takes inflation under control

MOSCOW, Jun 7 (PRIME) -- The Russian government has taken inflation under control – prices stopped growing, but the situation still needs monitoring, President Vladimir Putin said on Tuesday.

“We’ve managed to take inflation under control. It amounted to 17.4% in annual terms as of May 27, but the price growth completely stopped in the second half of May. Inflation is at zero now,” he told a government meeting.

The situation has its advantages and disadvantages, and the government has to analyze it deeply and make timely decisions, he said.

The foreign currency market is stable, unemployment is at an all-time low, but the labor market risks persist, and the government should continue to control the situation, he said.

Supporting consumer demand and ramping up its growth is important as well as ensuring growth of household incomes and providing additional liquidity to business, he said.

Putin ordered the government to analyze tendencies in different industries, ramp up helping them to weather the current troubles and discuss additional support.

Industrial output gained 3.9% in January–April, but shrank slightly in April. The car industry and oil refining experience a noticeable slowdown, Putin said, adding that many sectors like the ferrous metals industry point to the risks of a significant reduction of output in the mid-term.

Putin also called on the central bank and the government to pay attention to corporate lending that has shrank lately in spite of cutting the key rate and a state support program.

The government also has to report to the president on the new structure of the budget rule until the end of July.

Putin will continue having sectorial meetings with the government members to address the challenges timely and efficiently, he said.

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