April 3, 2009

Russian inflation at 5.3 percent

The Central Bank of Russia said inflation in the first quarter of 2009 hit 5.3 percent and predicted an annual drop to less than the 2008 rate of 13.3 percent.

Bank Chairman Sergei Ignatyev said a weaker ruble had pushed inflation higher, but the ruble's fall ended in January, RIA Novosti reported Friday.

Further, an absolute break in the ruble supply in the past few months and the consistently low level of global food, energy and commodity prices, would continue to slow inflation, he said.

Inflation will be some 13 percent in 2009, according to our estimates. It could also be lower, Ignatyev predicted.