This is the third successive week that consumer prices have risen 0.1% after nine successive weeks of zero inflation.

Prices rose 8.4% between January 1, 2009 and November 23, 2009 (they rose 12.3% by the same date last year, 0.6% between November and November 23 and 0.8% in the whole of November 2008).

The biggest price increases were for butter, as in the previous week. This rose 1.0% last week (0.8% the week before). Fruit and vegetables rose for the first time since their protracted seasonal decrease.

The past week saw prices rises of 0.3%-0.7% for eggs, cheeses and selected other dairy products.

There were price drops of 0.3%-0.5% for frozen fish, sunflower oil, granulated sugar, flour, vermicelli pasta and cereal products.

Fruit and vegetables averaged up 0.2% in the week, with increases of 0.7% for onion and 0.3%-0.5% for potatoes, carrots and cabbage.

Gasoline went down 0.1% but diesel went up 0.2%.

Inflation was zero for the months of August, September and October.

Central Bank First Deputy Chairman Alexei Ulyukayev said on November 25 that inflation in the November 2009-January 2010 will be about half the level in the same period a year earlier. Russia had 0.8% inflation in November 2008, 0.7% in December and 2.4% in January 2009.

The Economic Development Ministry forecasts inflation will amount to 0.3%-0.4% in November and 0.4%-0.5% in December.

Inflation in January-October 2009 was 8.1%. Year-on-year inflation in October was 9.7%.

If Ulyukayev's predictions are accurate, year-on-year inflation in January 2010 would be less than 8%.

Inflation in 2010 may be substantially lower than the official forecast of 9%, which will allow the Central Bank to continue cutting interest rates, Ulyukayev said.

The Econ Ministry expects inflation to be 9% in 2009. Russia had 13.3% inflation in 2008, the highest yearly rate since the 15.1% recorded in 2002.

(c) 2009 Daily News Bulletin; Moscow - English. Provided by ProQuest LLC. All rights Reserved.

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