Oreshkin: increase in annualized inflation temporary, will slow to 3.8% by year-end
PETROZAVODSK. July 26 (Interfax) - Russian inflation will slow to 3.8% by the end of the year and the slight quickening seen of late is due to a temporary spike in vegetable prices that is already dissipating, Economic Development Minister Maxim Oreshkin told reporters in Petrozavodsk on Wednesday.
"Our inflation has increased a little bit, to 4.4% [in annual terms in June from 4.1% in May], but this was the temporary effect of a later vegetable harvest this year owing to not very warm weather at the beginning of summer. The situation is now improving," he said.
"We are seeing that for inflation we will move by the end of the year to the forecast that we had, 3.8%," Oreshkin said.
"As of year-end our inflation may be lower or higher than that figure. Perhaps we will refine the forecast a little, but not very seriously, during the August review," he said.
Fruit and vegetable prices declined 1.7% in the week of July 11-17, after declining 0.7% in the previous week. Before that, since the end of March, fruit and vegetable prices had risen continuously.
As a result, annualized inflation fell to 4.3% as of July 17. Inflation was 2.7% since the beginning of the year.
Rosstat will publish inflation data for the week of July 18-24 later on Wednesday.