MOSCOW - Inflation in Russia was 11.7 percent in 2004, the Federal State Statistics Service said. Consumer prices rose by 10.3 percent. In particular, food prices increased 12.3 percent, non-food prices rose 7.4 percent, and prices for paid services – by 17.7 percent.
Initially, inflation was projected to be 10 percent in 2004, but the Economy Ministry raised its forecast to 11.5 percent in late November. Arkady Dvorkovich, head of the Presidential Administration’s Expert Department, said in December that annual inflation would be 11.5 percent to 11.7 percent.
According to the Statistics Service, inflation in December 2004 was 1.1 percent compared with November 2004. Average daily inflation was 0.037 percent, up from 0.035 percent in December 2003.
In Moscow, consumer prices increased 0.9 percent in December 2004 (11.5 percent in January-December 2004), in St. Petersburg – by 0.8 percent (12.7 percent in January-December). On the whole in Russia, food prices rose 1.7 percent in December 2004, non-food prices rose 0.4 percent, and prices for paid services went up 1 percent.
The highest consumer inflation rate in December was reported in the Chukotka Autonomous District and Ingushetia – 3.3 percent and 2.7 percent, respectively.
The reference consumer price index was 101 percent in December (110.5 percent in January-December).
Commenting on Russia’s economic achievements in 2004, economy minister German Gref said the country’s economy was developing quite dynamically and steadily. “Things should be good in 2005, too,” he noted. At the same time, the minister admitted that the government would have difficulty meeting economic targets.
GDP growth is projected to be 6 percent in 2005, and personal incomes are expected to rise 10 percent in real terms. “In this respect, the situation is stable in Russia so far. But much will depend on overcoming negative economic trends and the implementation of liberal reforms,” Gref said.