Ministry of Economic Development of the Russian Federation reduced inflation predicted values

According to calculation of the Ministry of Economic Development of the Russian Federation till the end of the year the inflation in Russia will amount to 6-6,5%. According to the head of the department Alexey Ulykaev, domestic economic entered the path of gradual decline in inflation. Such optimistic Ulykaev’s projections are explained by ruble stabilization, seasonal decline in food prices and also by reduction of regulated tariffs and prices indexation.

It is also possible to make a positive forecast of inflationary changes, basing on the situation in agriculture. Reportedly to Ministry of Agriculture, 97-98 million tons of crop is expected in the current year, which is quite good result. We will remind that in the Russian basket by a consumer price index, the share of foodstuff - is 38%.

According to the Central Bank (CB) assessment, the contribution of unforeseen factors to annual inflation is 1,5%. According to statement of CB representatives, the change of a monetary policy orientation allowed to avoid significant deviations from target values of inflation in medium-term prospect. However, mega-regulator preserves the intention of the transition to a floating rate of ruble. After decrease in threats of financial stability the Central Bank reduced the intervention volume on 100 million dollars.

Except the correction of inflation expected values, the Ministry of Economic Development of the Russian Federation announced a preliminary estimate of GDP growth in the second quarter 2014. Thus, according to the preliminary estimate of the department, it is possible to expect the growth to 1,2%.

By the results of first half of the year, the growth of industrial production by 1,8% is noted. Moreover, quarterly growth is also observed: 1,1% by the results of first quarter and 2,5% - by the results of the second. Herein processing production grows better than mining.

Talking about positive dynamics of industry development, should be noted a role of currency fluctuations, which have led to reduction of expenses for domestic manufacturers. Reduction of expenses, in turn, significantly increased the competitiveness of the Russian manufacturers, both on domestic and foreign markets.