Inflation will decline due to rising unemployment?

Government Regulation igry13-10-2009 Inflation will fall due to unemployment? Ministry of Economic Development believes that the unemployment situation, especially in inland areas, may be somewhat worse, and inflation - to improve. Thus, at a meeting of the State Duma budget committee acting Director of the Department of Macroeconomic Forecasting of the Ministry of Eugene Khotulev suggested that unemployment could reach next year's 9,6% of the economically active population. The forecast for the current year - 9,3%. But inflation, according to officials, may be lower than the official forecast (11-12%) and the amount 10,5-11%. Rising unemployment in the first place is expected in the domestic industries. Hence, in sectors oriented to domestic demand. This means either of a period of administrative "pending layoffs, or further projected decline in domestic demand. However, not a hindrance, but instead promotes. After growth of the number laid off means a fall in incomes and consumer demand, and therefore, another reduction in production volumes, which leads to layoffs and falling incomes, this demand-oriented industries, etc. for this ill-circle, called a deflationary spiral, or compression.