Russia's Finance Ministry projects zero inflation for August

The Finance Ministry hopes for inflation in Russia to stand at the zero level in August and not top 14 percent on results of the year, said Vice-Premier and Finance Minister Alexei Kudrin. He said that inflation being 0.6 percent instead of zero during two weeks in July is no ground to alter the forecast for the future. Kudrin recalled that in the first half of June inflation was going up and standing still in the second half of the month. The same scenario is a possibility for August.

Alexei Kudrin does not think that a nine percent inflation over six months of this year can undermine plans for keeping the yearly inflation within 14 percent. He explained that the 2001 dynamics shows that it is possible to curb inflation even if it was at an uprise in the first six months.

The finance minister is sure that "monthly movements and the present price fluctuations" are no reason for revising the prediction. Yearly inflation depends on basic long-term tendencies, which are quite favourable, he said.

Commenting on the premier's words that the Finance Ministry and the Central Bank are not yet keeping inflation processes firmly in hand, Kudrin assured that steps planned by the government and the Central Bank are in process now and they do secure meeting the prognosticated goals.