Russia lowers inflation forecast for 2011

Russian Economic Development Ministry on Monday lowered the inflation forecast in 2011 to 6.2-6.5 percent from 6.5-6.7 percent. According to Deputy Economy Minister Andrei Klepach, Russia's inflation rate this year is expected to "be near the lower boundary" of the range of 6.2-6.5 percent. He said the forecast for 2012 inflation has been unchanged with 5.0 to 6.0 percent. Russian State Statistic Office reported earlier that the country's inflation reached 5.7 percent as of Dec. 5. Klepach said it was too early to predict how the results of the parliamentary elections in Russia would affect the markets, but said the Russian economy has retained its attractiveness for foreign investors. He also predicted the capital outflow in 2011 would be between 80 to 84 billion U.S. dollars.