Natural resources export, not supported with the proportional growth of the other sectors of Russian economy is likely to cause last year’s price increases. In Russia, according to Interfax, the inflaction for 2007 reached 12%.
This perhaps would also be reflected in the corresponding salary increases of IT personnell, making offshore outsourcing less attractive proposition for the Western customers.
But so long as the population keeps its savings in a stable currencies (albeit salaries of many employees are still measured in declining dollar), the impact of the price increases on savings would not be anything like hyperinflation of the mid-90s.
