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RIA Novosti

Russia

Russia's inflation hits 6% as of April 20

16:36 22/04/2009
MOSCOW, April 22 (RIA Novosti) - Consumer prices in Russia grew 6% from January 1 to April 20, matching last year's figure for the same period, the national statistics body Rosstat said on Wednesday.

The government expects inflation to stay below 13% in 2009, compared to last year's figure of 13.3%.

Russian Finance Minister Alexei Kudrin said earlier in the day that the 7.4% budget deficit projected in the 2009 adjusted budget would not allow inflation to rise above 13-14% this year.

Russia posted a budget deficit of 50 billion rubles ($1.5 billion), or 0.1% of gross domestic product, in the first quarter.

Kudrin said budget spending increased in the first quarter as the government allocated additional funds for anti-crisis measures, in particular measures to support the pension system, regional governments and key sectors of the economy, such as the defense complex and the auto industry.

He said the largest budget deficits were expected in the second, third, and possibly fourth quarters, as the government spends more on anti-crisis measures. The minister said the 7.4% federal budget deficit in 2009 would be covered with resources from the Reserve Fund.

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