Russian Minister Warns of Economic Overcooling Amid Falling Inflation
(MENAFN) Russian Economic Development Minister Maxim Reshetnikov has issued a warning about mounting concerns that the nation’s economy may be at risk of cooling too rapidly.
Addressing lawmakers in the State Duma, the lower chamber of Russia's parliament, Reshetnikov noted a recent slowdown in inflation, which has settled at an annual rate of 3–4% in recent weeks. He observed, “Recently, weekly data on inflation is not much different from monthly data, and fluctuations in data have also decreased.”
He emphasized that this trend should play a crucial role in shaping future decisions by the Central Bank of Russia on monetary policy. “Because in the current conditions, we see the risks of overcooling of the economy,” Reshetnikov stated.
On May 20, Alexander Shohin, president of the Russian Union of Industrialists and Entrepreneurs (RSPP), echoed these concerns, cautioning that the likelihood of a technical recession has grown.
In response to earlier inflationary pressures, the Central Bank of Russia took a dramatic step in October 2024, raising its key interest rate by 200 basis points to a record 21%.
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