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. Last Updated: 07/27/2016

IMF Sees Growth and Inflation Up

WASHINGTON -- The International Monetary Fund on Friday said it expected robust economic growth in Russia over the near term, bolstered by high oil prices, but cautioned that inflationary pressures were building.

"With surging growth, the economy is running increasingly close to capacity," the IMF wrote in a notice. "Domestic resource constraints are tightening, not least in the labor market, causing increased leakage of demand into imports and renewed inflationary pressures."

The IMF said its staff projected gross domestic product growth of around 7 percent in the near term. The report follows the IMF's meetings with Russia, which concluded Sept. 12. The IMF said the country's monetary policy had become "more accommodative" over the past year after the Central Bank returned to a stable exchange rate policy.

"Demand pressures appear to be intensifying, driven by acceleration in investment and strong growth in private consumption," the IMF wrote.