By Laura Mills

MOSCOW--Russian Economy Minister Alexei Ulyukaev said Tuesday that inflation was likely to be below the government's target at 5.5% in 2016, according to Interfax news agency.

"This is a record year for us," Interfax quoted Mr. Ulyukaev as saying. "I understand that by European standards 5.5% does not sound like low inflation, but for Russia this is the case."

The government's official prediction for inflation this year is 5.8%. The minister said the country was on track to reach the central bank's 4% target for inflation next year.

Mr. Ulyukaev said the economy would grow next year by approximately 1%, in line with central bank and government predictions.

Russia's economy, buffeted by low oil prices and Western sanctions, shrank 3.7% last year and is on track to shrink this year.

Write to Laura Mills at

(END) Dow Jones Newswires

November 08, 2016 05:09 ET (10:09 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.