ECONOMICS MINISTRY ADMITS INFLATION WILL BE ABOVE PROJECTIONS.

Publication: Monitor Volume: 1 Issue: 58

Russian economics ministry experts told Interfax July 21 thatreal inflation will be 5 percent in August regardless of whatis officially reported. An article in the July 20 Trud suggeststhat the situation may be even bleaker. Raw materials prices areincreasing much faster than the consumer price index, a trendthat presages price rises for ordinary Russians in the future.Moreover, wages have become such a small portion of incomes thatthey are "more like a pension" than a salary and thusplay little role in stimulating economic activity, the paper said.And Russian radio reported July 23 that the production of consumergoods continues to fall faster than overall economic activity.Meanwhile, Democratic Party of Russia leader Sergei Glaziyev saidthat "Russia is already less economically developed thanChina or India" and will continue its decline unless thegovernment changes its approach, Interfax reported July 21.

Finance Ministry Admits Tax Collections are Below Claims.