By Swann Bigot, legal expert and consultant in international affairs, founder of the platform Eurasia Business News – January 2, 2020

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The famous Noviy Arbat Avenue in Moscow, with retail stores and restaurants, 2019 – Photo credit : Swann B.

The annual inflation in the Russian Federation in December 2019 slowed to 3% from 3.5% in November, reported the Central Bank of Russia. The inflation target was 4%.

The Russian Federal State Statistics Service, also known as Rosstat, published similar information :

According to preliminary data, the consumer price index in December 2019 will be 100.4%, from the beginning of the year – 103.0% (in December 2018 – 100.8%, from the beginning of the year – 104.3%).

This low inflation in 2019 (3%) follows the low indicator in 2017 – 2.5% (in the context of a record crop). In 2018 the inflation was 4.3%.

The Russian Minister of Economic Development Maxim Oreshkin earlier said that the inflation in 2019 would drop to 3% and should decrease to 2.5% or lower in the Q1 2020.

The Minister Maxim Oreshkin said last November during the VTB forum “Russia is Calling!” that this low inflation reduces the aggregate demand and inhibits economic growth.

During an interview on December 26 with the TV Channel Rossiya 24 Maxim Oreshkin also explained that in order to ensure a three percent increase of the GDP, structural reforms are needed.

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© Copyright 2019 – Swann Bigot, legal expert and consultant in international affairs, founder of the platform Eurasia Business News