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Inflation Slowing, But Above Forecast

Inflation in June slowed to 0.6 percent from 0.9 percent in May, but still exceeded the Economic Development Ministry's prediction of 0.5 percent, Interfax reported, citing data from state statistics agency Rosstat.

By comparison, prices in Russia rose 0.4 percent in June last year.

The slowing rate of inflation is partly an expected seasonal effect. Prices on vegetables and fruits, previously on the rise, decrease steadily throughout June.

Total inflation from the beginning of the year has now reached 4.8 percent. The Economic Development Ministry last week revised its inflation forecast for the year down to 7.7 percent from its earlier forecast of between 7.7 and 7.8 percent.

Central Bank head Elvira Nabiullina on Tuesday said that the regulator intends to keep its monetary policy tight with the goal of bringing inflation down to 4 percent within three years, reported.

See also:

Western Sanctions Freeze Russia's Economic Growth, IMF Says

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