7 Oct 2009 13:13

Kudrin conservative on inflation

MOSCOW. Oct 7 (Interfax) - Russia could have inflation of 11% or just under in 2009, Deputy Prime Minister Alexei Kudrin, who is also the country's finance minister, told the Vesti TV news channel.

"My forecast is very conservative - I think it'll be around 11%," he said.

Many estimates put inflation at less than 11%, and that is certainly possible, Kudrin said. "We'll have the lowest inflation in recent years," he said.

Kudrin said inflation was slowing partly because "we're not going overboard with the amount of money in the economy." "Any excess money is not a hindrance," he said.

Experts also link the slowdown in inflation to shrinking consumer demand.

Inflation was zero in September for the second month in a row, and inflation in annual terms slowed to 10.7%, from 11.6% in August.