MOSCOW, December 19. /TASS/. Expanding the list of socially important goods with the preferential VAT rate will make it possible to lower the inflation rate on the Russian consumer market, project manager of the Macroeconomic Analysis and Financial Markets practice in the Center for Strategic Research Bakhtiyar Dzhafarov told TASS.

The Kremlin is concerned of inflation growth on the consumer market, press secretary of the Russian President Dmitry Peskov told reporters on Thursday. Annual inflation in Russia climbed to 8.4%, the highest level over six years, according to the Russian statistical agency Rosstat. Inflation as of 2021 year-end will reach 7.4-7.9%, the Bank of Russia indicated in its recent outlook.

"To reduce food inflation, it is feasible to consider the issue of expanding the list of socially significant goods with the preferential VAT rate. Cancellation of traditional increases of gasoline and diesel fuel rates - by 4% from January 1 and public utilities tariffs - by 2.9-6.5% depending on the region - remains among other efficient and prompt measures," the expert said.

The Russian Government has taken the whole range of measures but "it was difficult to limit the price hike, considering the global trend of rising prices of commodities, food, transportation, as well as Russian currency weakening and low harvest in Russia and globally," Dzhafarov noted.