"We will revise down the oil price, revise up the inflation forecast, and revise down the currency exchange rate – it all will mean lower real income due to a higher inflation level, lower retail turnover rates, which will also affect negatively the GDP forecasts," Alexey Ulyukaev told journalists.
According to the ministry's September forecast, the yearly average dollar rate for 2015 was expected to be 37.7 rubles per dollar against 35.67 in 2014.
Ulyukaev also said that the Economic Development Ministry would revise its forecast concerning the level of Russia's import and export.
In 2014, the export level was expected to rise by 0.7 percent to $512 billion, with the decrease by 0.2 percent to $495 billion in 2015.
Ulyukaev also said he expected the growth of GDP in 2014 to be slightly higher than the predicted 0.5 percent but did not think it would exceed one percent.
Russia's Inflation in 2014 to Be Less Than 10%
When responding to the reporters’ question whether the inflation in 2014 could reach 10 percent, minister said “in 2014-no”. He added that the consumer prices increase for 2014 will be set at “around 9 percent”, possibly slightly higher.
Earlier in November, addressing the same issue, Ulyukaev stated that inflation this year wouldn't be less than 8.5 percent. According to the minister, Russia will face the most "acute" period between February and March 2015, after which a slowdown in consumer prices growth is expected.
The European Commission's forecast, published on November 4, suggests that inflation in Russia will remain elevated in 2015 and will fall to 6 percent only in 2016.
In recent months, Russia's economy has been showing signs of a minor slowdown, due to the current geopolitical tensions over the situation in Ukraine and the continuing decline in oil prices.
