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Russia's economy ministry forecasts up to half pct inflation Oct

The inflation over 2011 may be below seven percent

MOSCOW, October 5 (Itar-Tass) —— Russia’s Ministry of Economic Development expects inflation in October at 0.3-0.5 percent, Deputy Minister Andrei Klepach said on Wednesday.

“If we consider the first week, till October 3 – it is zero,” he continued. The level of inflation will depend on prices on fruit and vegetables – “whether it would slump, but all the rest would grow.”

Klepach admitted that the inflation over 2011 may be below seven percent.

Rosstat reports that inflation in September was zero, and since the beginning of the current year it has made 4.7 percent.

In late August, Russia’s Ministry of Economic Development lowered officially the upper limit of the inflation corridor. Thus, the forecast for 2011 makes 6.5-7 percent. However, as of now, with the falling rouble rate, experts admit that the inflation may be above the forecast. For example, Head of the Central Bank of Russia Sergei Ignatiev said that the level of inflation may be by several decimal points of one percent above the forecasted seven percent.

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