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Russia’s 2013 inflation to be above 6%

GDP - below targeted 1.8%

SEOUL, November 14, 3:45 /ITAR-TASS/. Russia’s economic growth in 2013 is expected to be at 1.5-1.6 percent of the Gross Domestic Product (GDP), Russian Minister of Economic Development Alexei Ulyukayev told reporters on Wednesday.

“Most probably, this year’s result will be below the target of 1.8 percent of the GDP by 0.2-0.3 percent,” he said.

Apart from that, Ulyukayev said that the 2013 inflation would exceed the planned six percent. “It will be at 6.0-6.1 percent,” the minister said.

In his words, Russian Prime Minister Dmitry Medvedev planned to chair a meeting on Thursday to discuss the current economic situation in the country.

Earlier, the minister repeatedly said that the ministry of economic development was not going to review its forecast for the GDP growth and the inflation rate for 2013. He expressed confidence that the Russian economy was able to demonstrate “statistically substantial growth” in the fourth quarter of the year. As for inflation, Ulyukayev said that it was rather realistic to keep it within six percent in spite of the accelerated dynamics of the past six weeks.

On Tuesday, the Russian State Statistics Service announced its estimate of the GDP growth in the third quarter, which amounted to 1.2 percent on the same period of 2012 and met the forecast made by the ministry of economic development. In January-September, the GDP growth amounted to 1.3 percent, the ministry said. In the second quarter, it amounted to 1.2 percent, slowing down from 1.6 percent in the first quarter.

By November 5, Russia’s inflation was 5.4 percent, as compared with 5.7 percent in 2012, with the yearly forecast of six percent. In October, the inflation rate increased to 0.6 percent versus 0.2 percent in September 2013. According to the ministry of economic development, November inflation is projected at 0.3-0.4 percent and 5.6-5.7 percent in January-October.

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