Russia's Economic Development Ministry Upgrades 2021 National Inflation Forecast To 7.4%

Faizan Hashmi Published October 12, 2021 | 01:35 PM

The Russian Ministry of Economic Development raised the 2021 national inflation forecast to 7.4% from 5.8%, with food inflation chiefly contributing to the price surge, Economic Development Minister Maxim Reshetnikov said on Tuesday

MOSCOW (UrduPoint News / Sputnik - 12th October, 2021) The Russian Ministry of Economic Development raised the 2021 national inflation forecast to 7.4% from 5.8%, with food inflation chiefly contributing to the price surge, Economic Development Minister Maxim Reshetnikov said on Tuesday.

"The events enfolding in the external and internal food and goods prices have resulted in the need to revise our estimates of the yearly inflation," Reshetnikov said at a briefing, noting that food inflation makes the key contribution.

Surging fruit and vegetable prices, and the accelerating rise in meat prices are the most important factors, the minister specified.

"Taking these factors into account, we upgraded our inflation forecast by 1.6 percentage points to 7.4%," Reshetnikov said.

The 2022-2024 forecasts related to inflation and other budget generating parameters remain unchanged, according to the minister.

"In 2022, we expect inflation to return to the target level of 4%," Reshetnikov added.

In 2021, Russia's GDP is expected to see a 4.2% increase, the minister of economic development noted.