Despite predictions that inflation would rise sharply in August, officials said Monday that this month's inflation rate would remain at the lowest levels seen since reforms began in 1992.


"For the moment, there are no clear signs of an acceleration in inflation," said Sergei Ignatiev, Russia's deputy economics minister.


Ignatiev told a news conference that August's inflation rate would be about the same 5 percent average registered in June and July.


Until recently, economists were predicting that inflation would rise by the end of the summer as a result of increases in the money supply this spring. Last year, monthly inflation averaged 20 percent.


Lately, Russian confidence in the ruble has led to greater demand for the currency and offset the fact that the Central Bank put more money into circulation this spring, the officials said.


"We underestimated the changes in inflationary expectations," said Sergei Alexashenko, Russia's deputy finance minister.


But even if inflation remains low in August, it is expected to rise by 8 to 10 percent in October, before slowing by the end of the year. The government has set its year-end goal for monthly inflation at 7 to 8 percent.