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Russia's Finance Ministry Forecasts Year-End Inflation at 11 Percent

Russia's Finance Ministry sees year-end inflation between 10.5 percent and 11 percent, and most likely at the upper end of that range if oil prices remain at their current levels, Deputy Finance Minister Maxim Oreshkin said on Monday.

His comments are in line with his ministry's official forecast. The central bank said in June it expected end-year inflation to be around 10.8 percent if oil prices averaged $60 a barrel.

Brent crude oil was trading at around $53.5 a barrel on Monday afternoon, after falling sharply in recent days, pulling down the value of the ruble.

The central bank meets on Friday for its next monetary policy meeting on interest rates.

The bank has cut its key rate by a cumulative 5.5 percentage points in 2015 as inflation has eased and the outlook for the economy has worsened.

Inflation, at 15.3 percent in June, is expected to rise again in July as annual utility tariff raises kick in.

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