‘If the government decided to take some strict measures, the annual inflation rate could actually be kept at 10%. A certain degree of reasonable state interference (provided the external conditions are favorable enough) would do our economy good and might be able to slow down the price growth,’ says SKB-Bank’s Deposit Operations Director Denis Belogurov.

In the meantime, the Bank of Russia’s First Deputy Chairman Alexei Ylyukaev announced at the State Duma meeting that the inflation was not going to exceed 10% in 2008. At the same time, the federal statistical bodies report prices have already gone up by 6% between January 1, 2008 and April 21, 2008. The Chairman said this could be explained by ‘some fundamental global factors’.

Alexei Ylyukaev says the inflation is to be controlled through the federal authorities’ efforts and foreign capital inflow as well as slower money growth.