MOSCOW, August 26 (RIA Novosti) - The government hopes that inflation will not exceed 5% in 2008, Deputy Prime Minister Alexander Zhukov said Sunday.
Under a forecast for the country's social and economic development in 2007-2009, prepared by the economics ministry and approved by the government August 17, inflation is projected at the level of 4.5-6% in 2008.
"In a perspective, we presume that inflation will be decreasing and will not exceed 5% in 2008," Zhukov said.
Zhukov also said inflation was expected to be at the level of 6.5-8% in 2007.
"Despite a significant increase in expenditures, the budget [for 2007] will be balanced and will run a surplus. This allows us to reduce inflation," Zhukov said.
Zhukov also said the government would continue its tight budget policy to prevent high price growth.
