Russian inflation at record low of 2.5 pct in 2017

Inflation in Russia hit a record low of 2.5 percent last year, the country's official statistics service Rosstat said Wednesday.

The rate began to steadily decline from a peak of 12.9 percent in 2015 to 5.4 percent in 2016.

Last month, the Russian central bank said it expected annual inflation to reach 3 percent at the end of 2017 and draw near 4 percent by late 2018.

Moderate price growth has created room for easy monetary policy. The Russian central bank cut its key interest rate six times in 2017 from 10 percent to the current 7.75 percent.

More reductions are possible as central bank governor Elvira Nabiullina said in November that the bank may slash the rate step by step to 6 or 7 percent over the next one or two years.

The Russian economy is improving and the positive momentum continues, President Vladimir Putin said Wednesday when visiting a railway carriage factory.

(ASIA PACIFIC DAILY)