icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Inflation in Russia highest since 2008

Inflation in Russia highest since 2008
The inflation rate in Russia reached 12.9 percent in 2015, according to the Federal Statistics Service. This is the worst rate since the global economic crisis in 2008 when annual inflation edged 13.3 percent.

Apart from 2008, inflation in Russia has only been this high twice in the last 15 years, in 2001 at 18.8 percent and 2002 at 15.06 percent.

According to official estimates, Russian inflation in 2015 should have hit 12.2 percent. However, in December, the ministries of Finance and Economic Development downgraded their forecasts due to collapsing crude prices. In particular, Finance Minister Anton Siluanov predicted even higher inflation this year; slightly more than 13 percent.

However, he predicted that inflation will slow down in Russia next year.

"We plan inflation will be at the level of 6-7 percent compared to a little more than 13 percent in the current year," he said.

On Monday, Economic Development Minister Aleksey Ulyukaev predicted the Russian economy would contract 3.7-3.9 percent in 2015. According to him, $40 oil doesn’t threaten the stability of the economy, but doesn’t allow GDP, production and consumer demand to grow next year.

Global oil glut to persist in 2016 – IEA

In the budget for 2016, Russia was working on $50 per barrel and 63.3 rubles per dollar. However, as the glut persists and oil prices continue to fall, the Kremlin is ready to revise the budget.

Brent crude was trading at $36.42 as of 12:24pm GMT on Thursday.

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.