MOSCOW, September 14 (RIA Novosti) - Bringing inflation below 11% has been a major objective for the government this year, the finance minister told the parliamentary hearing on the draft 2006 federal budget Wednesday.
"Even 11% is a high figure," Alexei Kudrin said. "Such a high inflation is a sign we have managed the financial system poorly."
"Reducing inflation would be a structural measure and a landmark event for our economy. This is the task set by the president and supported by parliament," Kudrin said.
He said "monetary factors account for 80%-90% of overall inflation."
Kudrin said the growing natural monopoly and public utility tariffs would decline in 2006.
"Natural gas prices are expected to rise by 23% in 2005, whereas in 2006, they will grow 11%," he said.
In 2006, inflation will be at 7%-7.8% and in 2007 it is expected to drop to 6%-7.5%. In 2008, the figure will be 4%-5.5%, according to the government forecast.
