Inflation in Russia proved higher than expected in 2013, says a report by the Russian Federal Statistics Service.

      According to it, the annual figure stands at 6.5 percent.

      Earlier in December 2013, the government reviewed its initial forecast of 6 percent to 6.2 percent.

      But while inflation is rising, GDP growth slowed down in 2013 to a mere 1.4 percent.

      The deceleration took the authorities by surprise. In June 2013, Alexey Ulyukayev replaced Andrey Belousov as Economic Development Minister, but has so far failed to kick-start the economy.

      According to the IMF, Russia’s prospects “have been dampened by a weak external environment, some acceleration of capital outflows and declining equity prices and subdued investment”.

      Industrial output has been flat within the past ten months, and the privatization campaign announced earlier by the Medvedev cabinet has stalled amid a bleak economic outlook and reluctance of state corporations’ management to share their revenues and power with foreign players.