Russia should orient its monetary policy more strongly toward fighting consumer price inflation, the International Monetary Fund's Senior Resident Representative in Russia Odd Per Brekk said on Thursday, Jan 26.

"Russia's monetary policy needs to be anchored more firmly on inflation. This is because low and stable inflation is key to mobilizing resources domestically, and channeling them to productive investment and other uses," Brekk said.

Consumer price inflation in Russia hit a historic post-Soviet period low of 6.1 percent in 2011. The government's inflation forecast bracket for 2012 stands at five-six percent.

"Our analysis suggests that a medium-term target range for inflation of three-five percent would be appropriate," he added.

Brekk said the IMF agreed with the Bank of Russia's intention to move to fully-fledged formal inflation targeting, in the context of a flexible exchange rate, by 2014.

"It will be important to continue progress towards a more flexible ruble exchange rate, and at the same time strengthen the Bank of Russia's monetary policy toolkit," he said, RIA Novosti reported.