The forecast written into the 2005 federal budget is 8.5%.
In 2004, inflation in Russia reached 11.7%.
Alexander Shokhin, chairman of the Entrepreneurs Unions' coordinating council, called the finance ministry's adjustment of the inflation forecast for 2005 a sensible measure. In his opinion, the adjustment of forecasts on the key macroeconomic indicators (not only inflation, but also oil prices) will make it possible to draft a more realistic budget for 2006. "Starting the budget process by the adjustment of key indicators we shall place the 2006 budget on a realistic basis," he said.
Alexander Shokhin recalled that the government's usual practice was to adjust the inflation forecast at the end of the year, or at least, not before October. However, considering that in January-February of this year inflation doubled the last year's indicators, the finance ministry "was forced to make the adjustment. No miracle can be expected," the expert said in conclusion.
