UPDATE: Russia’s CPI to amount to 3% in 2018, 4-4.5% in 2019

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MOSCOW, Jun 20 (PRIME) -- Russia’s inflation will amount to around 3% in 2018 and 4–4.5% in 2019, and pensions will be adjusted accordingly, Finance Minister Anton Siluanov said on Wednesday.

“We expect inflation at around 3% this year and at 4–4.5% next year. Considering the fact that pensions are adjusted basing on previous year’s inflation, the adjustment will be twice as large as pensions projected for this year,” he said.

Siluanov also said that the budget rule, under which energy revenues from oil sold at over $40 per barrel are used to buy foreign currency on the domestic market, makes the ruble more predictable.

“But for the budget rule the ruble would cost around 50 per U.S. dollar… Of course, the ruble would be stronger but we would also have an opposite movement if oil deflated. Such volatility and unpredictability may hurt entrepreneurs,” he said.

“The main task is not so much to form reserves, which is also important, as to ensure predictability for business in what relates to the exchange rate.”

The minister also said that compulsory health insurance payments to unemployed people amounting to around 500 billion rubles annually may be transferred to the federal budget.

(64.0683 rubles – U.S. $1)

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