In 2019, inflation in Russia will be closer to 3%, the government and the Bank of Russia need to coordinate their efforts to support aggregate demand corresponding to inflation target of 4%, said the head of the Ministry of Economic Development Maxim Oreshkin. He said this at the VTB Capital investment forum “Russia is calling!”
“How many do not deal with structural reforms, it is important that the aggregate demand corresponds to the potential level. This year, inflation will be closer to 3%, this is much lower than the expectations that the Central Bank had with us”, he said. According to him, this means a shortfall in a certain amount of aggregate demand.
“And what is it? These are lost earnings by the population, lost earnings by companies, lost budget revenues. According to our estimates, the lack of aggregate demand this year is more than 1 trillion rubles”, the minister added.
According to Mr. Oreshkin, the Central Bank began to respond to this problem. He called on the government to coordinate its actions with the Central Bank in this regard, so that the aggregate demand corresponded to inflation of 4%, and inflation stably kept near the target level.