Russia is facing increasing inflationary pressure in 2014 amid flat production, stagnation and growing social expenditures.

      The Bank of Russia, which is the nation’s Central Bank, has admitted it has been unable to keep prices in check but promised it has enough gold and foreign exchange reserves to address this major issue.

      In May 2014 inflation totaled 0.9 percent, one percentage point higher than the projections given by the Economic Development Ministry.

      Sberbank CIB has forecasted a 8 percent inflation rate for 2014 while Economic Development Minister Alexey Ulyukayev downplayed any inflationary figures.

      “The inflation will top 7.7-7.8 percent in June and will taper off starting from July,” he said.