Deflationary trend in Russia continuing, last week's inflation linked to indexation of utility charges - minister

MOSCOW. July 7 (Interfax) - The deflationary trend in the Russian economy is continuing, and the inflation last week was connected to the indexation of utility charges from July 1, Russian Economic Development Minister Maxim Reshetnikov said.

"The emergence of inflation last week should not be overestimated. This is mainly connected to the indexation of utility charges. If we remove regulated services, then we'll see that deflation continued here, moreover, continued at a fairly tangible level," Reshetnikov said at a meeting of the Volga Federal District Council chaired by Russian Presidential Envoy to the Volga Federal District Igor Komarov.

"The main risk to the economy's recovery remains, and it's weakness of demand. This is confirmed by both the deflationary trend in the economy and a slowdown in lending," he said.