December 27, 2008

Russia inflation could slow in 2009

Inflation in Russia next year could slow to 11 percent, after reaching as high as 13.8 percent in 2008, the country's finance minister said Saturday.

With economic growth at 2.4 percent and the oil price at $50 per barrel, inflation in 2009 will total 11 percent, Alexei Kudrin, who also is a deputy prime minister, was quoted by RIA Novosti as saying.

But he added that if the price of oil price moves lower in the coming year, inflation could track higher, reaching 15 percent, the Russian news agency reported.

At 13.8 percent, 2008's inflation rate would surpass Russian Prime Minister Vladimir Putin's previous projection of 13 percent, which was higher than the government target of 11.8 percent.