UPDATE 1-Russian Economy Ministry expresses concern over high food exports
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MOSCOW, May 13 (Reuters) – The Russian Economy Ministry is exploring possible measures to address the problem of high food exports amid globally higher prices for food and raw materials, the Minister of Economy said on Thursday. Economy Maxim Reshetnikov.
Russia, which competes for the rank of the world’s largest wheat exporter with the European Union, this year imposed grain export restrictions in an attempt to curb domestic food inflation.
The Economy Ministry will now consider the need to change existing brakes as global inflation has accelerated, the minister said.
“What really concerns us is that world prices for food and raw materials, in general, resumed their growth in April,” Reshetnikov told reporters.
Russia continued to export food in April despite “dramatically increased” export duties, Reshetnikov said.
Economics Ministry sticks to its year-end forecast for Russia’s inflation at 4.3%, said Reshetnikov, which is lower than central bank forecast of 4.7% at 5.2%.
Rising inflation, spurred by the weakness of the ruble, prompted the central bank to reverse its monetary easing cycle and hike rates twice this year, while signaling that more hikes could follow despite the downside risks posed by monetary tightening. (Reporting by Darya Korsunskaya and Polina Devitt; writing by Andrey Ostroukh; editing by Jan Harvey)