By Andrey Ostroukh
MOSCOW--Russia's consumer inflation rose to 0.3% in the week to July 7 from 0.1% the preceding week, data from the Federal Statistics Service showed Wednesday.
Inflation in the first week of the month contrasted with the finance ministry's forecast that inflation would start to taper at the beginning of the month--because Russia isn't increasing business utility tariffs this year.
The data showed that the spike in weekly inflation was driven by rising prices for eggs, bread and meat products. This brought inflation to 5.1% since the beginning of the year, compared with 4% in the same period of 2013.
Earlier on Wednesday deputy economy minister Andrei Klepach said inflation may slow to 0.5% in monthly terms in July.Inflation in Russia accelerated in June to its highest level since August 2011, with prices going up 0.6% in monthly terms, pushing annual inflation to 7.8%--well above the central bank's outlook of 6.5% for the whole of 2014. The data provides the central bank with more reasons to tighten its monetary policy when it meets later this month.
The central bank is planning to switch to inflation targeting policy next year, for which it needs to tame stubbornly high inflation and inflationary expectations. It now expects 2014 inflation to be 6.5%.
The bank's next meeting to discuss rates is on July 25.
Write to Andrey Ostroukh at firstname.lastname@example.org
(END) Dow Jones Newswires
July 09, 2014 08:14 ET (12:14 GMT)
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