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Direct Line with Vladimir Putin

Putin expects inflation in Russia to drop to 5% in 2021

The head of state noted that annual inflation in Russia at the moment reached 5.9%

MOSCOW, June 30. /TASS/. Inflation in Russia may fall to 5% in 2021, it will hardly be possible to return it to the target values of 4% this year, Russian President Vladimir Putin said during the annual Q&A session on Wednesday.

"Our inflation increased, it was somewhere in around 4%, now it has risen to 5.9%, almost 6%. And, of course, the goal is to suppress it. That is why the Bank of Russia slightly raised the key rate so that there was no excess money supply in the economy. I hope that this inflation will return to the target indicators - to 4%. This year we will hardly be able to achieve this, but I think that we will be able to reach the 5% level," he said.

Putin added that annual inflation in Russia at the moment reaches 5.9%. "Inflation has grown by almost 6% - 5.9% at the moment," he said. At the same time, according to him, problems with food prices remain. In particular, with the prices of the so-called "borscht set", which includes carrots, potatoes, and other vegetables.

Earlier, Governor of the Bank of Russia Elvira Nabiullina noted that inflation in Russia presents a growing concern. According to Nabiullina, the annual rate of increase in prices has significantly exceeded the target level. According to the Russian State Statistics Service, annual inflation in Russia accelerated to 6.02% in May from 5.53% in April.

Earlier, Russian Finance Minister Anton Siluanov said at the St. Petersburg International Economic Forum that inflation rates in Russia indicate that the economy is "overheating" and that the state is worried about rising prices. According to Minister of Economic Development Maxim Reshetnikov, inflation in Russia at the end of 2021 may be higher than the forecast of 4.3%. The ministry will clarify the forecast in July. The government expects inflation at the end of the year at the level of 4.5-5%, according to First Deputy Prime Minister Andrey Belousov.

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Direct Line with Vladimir Putin

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