Russia not afraid of deflation

Finansy04-02-2009 Russia is not afraid of deflation While in Russia, dreaming that the rise in prices has slowed the pace in the Czech Republic, England and the United States and do a process of deflation. Russia under these circumstances would have rejoiced, but other governments in this situation is somewhat alarming. Falling prices due to lower demand - is a natural tendency in times of crisis, but Russia has the reverse process. During the first 26 days of January, the official inflation rate in Russia has already reached 2%, and our official inflation rate for last year 13.3% ahead of Ukraine only with the record in eight years the figure 22.3%. This unfortunate trend of price growth in our country does not surprise anyone, and does not change the habits of the government turning a blind eye to. But in Europe, U.S. and other developed countries, things are different. In general, the euro zone producer prices in December fell by 1.3% and annual inflation was 1.8%, which is the slowest growth for a long time. U.S. consumer prices in 2008 increased by 0,1%, thus, against the backdrop of recession, the cost of living in the U.S. declined for the first time since 1954.