MOSCOW (Sputnik) — There is every reason to think Russia will reach its inflation target of 4 percent this year, Russian President Vladimir Putin said during his annual "Direct Line" program.
“Our inflation rate is at a record low in Russia’s history. It’s 4.1 percent according to today’s data. This never happened before. It means there is every reason to think that we will reach our year-on-year inflation target of 4 percent,” the Russian leader said during the live program.
The president noted that fixed capital investment is currently growing faster than the economy in general.
“The economy grew 0.7 percent in four months [January to April 2017], while investment into fixed capital grew 2.3 percent… it means the basis has been laid for growth in the near future. It of course sets us on a positive mood. And it definitely must reverberate and it does, in fact, reverberate on some of the social issues,” Putin said.
According to Russia’s Federal State Statistics Service, the country’s year-on-year inflation in May totaled 4.1 percent, staying at the same level as it was in April. However, Central Bank Head Elvira Nabiullina noted early June that the bank does not consider its mission accomplished since its aim is to guarantee a stable low inflation in the medium term.