Russian ministry improves 2016 inflation outlook to 5.6% from 5.8%

MOSCOW, Dec 26 (PRIME) -- Russia’s Economic Development Ministry has improved its inflation forecast for 2016 to 5.6% from 5.8%, the ministry said in a monitoring report Monday.

“Under the Russian Economic Development Ministry’s estimate, the consumer price inflation index will amount to 5.6%, which is a bit lower than the official forecast, as a result of a bigger strengthening of the ruble and a persistently low consumer demand,” the ministry said.

In November, inflation remained almost flat on the month at 0.44%, the report said.

The ministry also improved its forecast for the gross domestic product (GDP) decline in 2016 to 0.5% from 0.6% on the back of an improved oil price forecast. The ministry raised the outlook for the annual average Urals oil blend price in 2016 to U.S. $41.8 per barrel from $40.

The ministry worsened its forecast for retail sales decline in 2016 to 4.9% from 4.6%.

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