Putin Saw the Connection Between Rising Prices and High Inflation in the United States
OREANDA-NEWS. High inflation in the United States will affect the entire global economy, Russian President Vladimir Putin said at a meeting on economic issues.
“In the US, inflation has exceeded five percent, although, in my opinion, their target is somewhere in the region of two. And for two years in a row they have been making up 15 percent of the budget with a deficit. This deficit is extinguished by what? Through emission. Hence the inflation, ”Putin said.
According to the president, inflation in Russia "albeit not so significant, but still goes beyond our targets." He called for coordinated action in response to rising prices.
In 2021, the annual inflation in Russia, according to the baseline scenario, will amount to 5.7-6.2 percent, the Central Bank said in a statement. At the same time, the Bank of Russia expects that, thanks to the ongoing monetary policy, inflation will decrease to 4-4.5 percent in 2022 and will remain at the level of 4 percent in the future.
The president himself said earlier that it would hardly be possible to reduce inflation to the target of four percent this year, most likely, it will be about five percent.
He noted that now the world food indices are at the highest level in the last ten years. At the same time, the head of state stressed that the country's authorities are taking certain actions to curb prices.