30 Aug 2010 15:37

Econ ministry projects 7.5%-7.8% inflation in 2010

MOSCOW. Aug 30 (Interfax) - Russia's Economic Development Ministry has raised its 2010 inflation forecast to 7.8% from 6%-7%, Deputy Economic Development Minister Andrei Klepach told the press on Monday.

"The forecast for 2010 is raised to 7-8% because of the drought, and with a large measure of confidence we expect consumer prices to increase within the interval of 7.5%-7.8%," Klepach said.

Klepach said that the inflation forecast for 20110 had been raised from 5.5%-6.5% to 6%-7% because of the draught "since the draught's effect could continue into the next year and cause possible problems for next year's harvest." He added that the forecasts for inflation 2012 and 2013 still come to 5%-6% and 4.5%-5.5%, respectively.

Touching on the forecast for August, Klepach expressed the opinion that the increase in prices for the month would be lower than 0.7%-0.8%. The Federal State Statistics Service (Rosstat) said that inflation for the first three weeks of August came to 0.6%.

When asked if the ministry would set price limits for socially important goods because of substantial increases, for instance on buckwheat, Klepach said that his ministry has been monitoring and discussing the situation with Russia's regions. He stressed that any decisions would be made following month-long monitoring of prices on goods.