MOSCOW, January 15 (RIA Novosti) – Russia is suffering from stagflation, a combination of stagnant economic growth and a high rate of inflation, the first deputy chairwoman of Russia’s Central Bank said Wednesday.
“In a whole group of countries with developing economies, including Russia, we can talk about the problem of stagflation: slowing economic growth accompanied by a spike in inflation,” Ksenia Yudayeva told the annual Gaidar Economic Forum in Moscow.
Russia’s gross domestic product last year grew by an estimated 1.4 percent, its lowest level since the 2009 recession.
Inflation in Russia has remained stubbornly high in recent years. Despite an inflation-targeting policy, the Central Bank failed to keep consumer price rises within its target band in both 2012 and 2013.
Economic Development Minister Alexei Ulyukayev warned on Wednesday that Russia’s average annual economic growth rate over the next two years would not exceed 2.5 percent, significantly below a forecast for the global economy of above 3.5 percent.
Ulyukayev told reporters that stagflation was an appropriate term to use in Russia today, the Prime economic news agency reported.