Russia's economics ministry cuts '11 inflation forecast to 6.2-6.5%

Russia's Economic Development Ministry has downgraded its forecast on inflation in 2011 to 6.2-6.5 percent from 6.5-7 percent, Deputy Minister Andrei Klepach said on Monday. "We have an inflation range at 6.2-6.5 percent. It is most likely to be near the lower boundary," Klepach told reporters. Russia's State Statistics Office has reported that inflation stood at 5.7 percent as of December 5. In 2010, annual inflation in Russia hit 8.8 percent, which was beyond all forecasts and equaled the figures for 2009, the year of the global financial meltdown. The Organization for Economic Cooperation and Development (OECD) has also reduced its 2011 forecast on Russia's inflation to 8.4 percent from 9.4 percent, but raised it to 6.5 percent from 6.4 percent for 2012. The OECD also forecasts 5.7 percent inflation in Russia in 2013. The OECD's estimates are based on the price of Brent oil blend at $110 per barrel in 2011-2013.