Russia`s inflation may exceed 10 percent in 2007, Deputy Economy Minister Andrei Belousov told journalists today. He noted that a rapid increase in inflation rate in the fall was triggered by higher consumer product prices.

Belousov pointed out that the government based its inflation forecasts on erroneous opinions. As a result, the government`s measures aimed at curbing inflation proved to be ineffective.

However, Belousov also said that the government could hold back further price increases. He added that the government would not revise its inflation rate forecast of 7 percent for 2007
sections: Economics