Putin outlines his plans

Newly appointed Russian President, Dmitry Medvedev addresses the Russian parliament to ask for agreement that his predecessor Vladimir Putin be appointed Prime Minister.

A seeming formality but Putin is back in office with barely time to draw breath following his presidency.

His first act as the new Prime Minister was to pledge to curb Russia's growing inflation and to vow to cut taxes on the oil industry.

SOUNDBITE: Incoming Prime Minister Vladimir Putin saying: (Russian)

"We will devote the closest attention to all aspects of financial policy -- first of all to measures directed at reducing inflation. Each one of us felt it personally in his pocket and the first ones to suffer are the most vulnerable ones."

Investors have said inflation is Russia's biggest economic problem.

The annual rate was above 14 percent in April and there were growing fears of labour unrest.

The incoming prime minister, who handed over the presidency to his chosen successor Dmitry Medvedev on Wednesday, also vowed to step up the fight against rampant official graft which he said was one of Russia's biggest problems.

This is the 10th year of rapid growth for Russia.

Putin said it was set to displace Britain this year as the world's sixth biggest economy based on purchasing power.

Penny Tweedie, Reuters.

barely - By a very little
draw - suck in or take (air); "draw a deep breath"; "draw on a cigarette"

graft - the practice of obtaining money by taking advantage of one's position

hand over - To release or relinquish to another.

purchasing - the act of buying; "buying and selling fill their days"; "shrewd purchasing requires considerable knowledge"