MC-21 airliner makes first test flight - sourceBusiness & Economy May 28, 11:00
Putin sends greeting to Border Guard on their professional holidayMilitary & Defense May 28, 10:57
Ukrianian court puts on hold lawsuit against ban on Russian social networksWorld May 28, 6:10
Russia’s Lasitskene wins high jump in Diamond League event in Eugene, USSport May 28, 4:59
Havana Airport gets Russian-made air traffic control systemsWorld May 28, 4:16
Guests of FIFA 2018 World Cup sure to get warm welcome in Russia — LavrovSport May 28, 2:25
Kantemir Balagov’s "Closeness" gets Cannes Festival’s International Critics’ PrizeSociety & Culture May 28, 1:03
Anti-church laws in Ukraine may cause religious strife — Ukrainian Orthodox ChurchWorld May 28, 0:22
Russia’s national football team absolutely clear of doping — doctorSport May 28, 0:14
MOSCOW, April 12. /TASS/. Additional oil revenues might provoke growth of inflation above the planned 4% if they are simply allocated at increasing budget expenditures, according to Prime Minister Dmitry Medvedev.
"There is, of course, never enough money. However, we should take into account the fact that the influx of unplanned revenues, if commodity prices remain at the same level, could also bring negative consequences if used just to increase expenses - primarily for the inflation rate. It might surpass the target 4%. If this happens, growth of prices will negate all possible benefits from additional revenues," Medvedev said.
He added that in case of inflation surge "people will have to pay more money for the same products, banks will keep higher rates, and producers will not be able to increase sales." "In general, the risks in this case grow. Everyone understands that our task is to take care of those achievements in the field of inflation targeting, which we have recently chosen for ourselves," Medvedev said.
He also noted that Russia could strategically face another increase of the commodity market influence, "we are trying to achieve the opposite effect - to reduce dependence of the budget on oil prices.".