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. Last Updated: 07/27/2016

Grain Prices May Help Curb Inflation

The Economic Development Ministry hopes to keep inflation below its 10.5 percent target this year because of falling domestic grain prices, a senior ministry official said Tuesday.

Oleg Zasov, deputy director of the ministry's macroeconomic planning department, said inflation in May should reach 1.1 percent, in line with the ministry's forecast of 1 percent to 1.1 percent and down from 1.4 percent in April.

"Inflation will be contained mainly by the falling grain prices. The harvest is expected to be good. We did not have the decline [in grain prices] in our previous forecast," Zasov said.

"So, we expect to have the targeted figure in December. … It is absolutely feasible, although it does not look very much so now," he added.

Russia expects to harvest 85 million tons of grain in 2008, which would be the second-largest amount since 2002, when it reaped 86.6 million tons.