Substantial slowdown in inflation in Russia is positive result of measures to cool economy - Putin

MOSCOW. Oct 2 (Interfax) - The substantial decline in inflation in Russia is a positive outcome of measures taken to cool the economy, President Vladimir Putin stated at the plenary session of the 23rd annual meeting of the Valdai Discussion Club.

Putin also expressed confidence that the Finance Ministry's plans to reduce the federal budget deficit projected at 3.2% of GDP this year and 2.2% of GDP in 2027 would be fulfilled.

"The budget deficit is 3% of GDP this year. I am confident that it should be 2% next year," Putin said.

"Yes, we had problems with inflation. We ramped up the economy and caused it to overheat. We consciously moved to cool it down, realizing that this would lead to a reduction in investment amidst rising interest rates, everyone understood that," Putin said.

"The main thing is not to overcool the economy; everyone talks about this and debates the Central Bank. One can debate the issue, and such discussion is useful, but the fact remains that we had double-digit inflation last year, 10.5% [in the spring of 2025], whereas this year it is just over 6% [around 6.3% at the end of September]. Nearly half the previous level. Is that a result? Yes, it is a result. A positive one? Well, certainly," Putin said.

"In short, there are challenges, but we are working through them. And macroeconomic indicators show that the economy is healthy, and the financial system and economic institutions are operating stably," Putin said.