Inflation rate forecasted

According to estimates of the Russian Central Bank, the inflation rate in Russia will reach 14.5 to 15 percent at the end of 2002, Chairman of the Central Bank Sergey Ignatyev stated at today's plenary meeting of the Russian State Duma. According to him, the planned level of 12 to 14 percent will not be fulfilled due to non-monetary factors.

However, Ignatyev pointed out that the inflation rate had continued declining. Over the first eleven months of 2002, it was 13.3 percent, while in the corresponding period of 2001, it amounted to 16.7 percent. "The unforeseen acceleration of the inflation rate growth in 2002 is not a very serious failure of the Central Bank", the bank's head believes.

In total, Ignatyev pointed out that this year's economic development corresponded to forecasts; the favorable foreign trade environment was one of the things which contributed to this. It is worth mentioning that the inflation rate amounted to 18.6 percent in 2001 and to 20.2 percent in 2000. Central Bank's forecasts were 12 to 14 percent for 2001 and 18 percent for 2000.

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