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. Last Updated: 07/27/2016

Russian Inflation Falls to New Low

Russia's annual inflation rate in 1997 totaled 11 percent, the lowest rate since economic reforms began in 1992, the State Statistics Committee reported Monday.

The result was somewhat better than expectations earlier this year. The government predicted this fall that inflation would be 12 percent to 14 percent in 1997.

Inflation in 1996 was 21.8 percent. Consumer prices in December rose by 1 percent, the committee said in a report cited by Interfax.

But Russian Central Bank chairman Sergei Dubinin said last week that it would be "very complicated" to meet the government's target of getting inflation down to 6 percent or less this year, Interfax reported. The Central Bank chief said the lower inflation goes, the harder it became to reduce it further.

The government's proposed 1998 budget sets an inflation target of 5.7 percent. (AP, Reuters)