Analyst says deflation unlikely in September

Deflation is unlikely to be registered in the first month of this fall, Bank of Moscow analytical department head Kirill Tremasov told in an interview with RBC TV. The seasonal factor continues in September, however, it is less vivid than in August. Statistics shows that in September, inflation is some 0.4 to 0.6 percent. Prices should grow by 0.9 percent on average every month until the end of the year to meet the government's forecast of a 12-percent inflation in 2003, the expert thinks.

As reported earlier, the index of prices in August 2003 was 99.6 percent of the July 2003 result, according to the Russian State Statistics Committee. So, deflation in Russia amounted to 0.4 percent in August. The last time deflation was registered in Russia was in August and September 1997 (0.1 and 0.3 percent respectively).