Russian officials say a prolonged depreciation of the ruble will lead to an acceleration of inflation in Russia
Russian Economic Development Minister Oleshkin said on the 11th that the long-term depreciation of the ruble will lead to an acceleration of inflation in Russia.
According to Russian media reports, Oleshkin said on the same day that if the ruble depreciation shows a long-term and stable trend, Russian inflation will accelerate. The Ministry of Economic Development will take into account the current depreciation of the ruble when drawing up its macroeconomic forecast for Russia from 2018 to 2021.
Affected by US sanctions against Russia and the deterioration of the situation in Syria, the Russian stock market and foreign exchange market have recently experienced great volatility. Data show that on the 11th, the ruble exchange rate against the US dollar once exceeded 64 to 1, the lowest record since December 2016, and the exchange rate against the euro exceeded 80 to 1, the lowest since March 2016.
Oleshkin noted that the current large amount of information has led to an increase in investors' risk assessment of the market, and hopes that investors will not focus on short-term fluctuations in financial markets, as it will not have a significant impact on the country's economic development. (Reporter Wang Chendi)