Russia may experience deflation in Aug-Sept - Klepach

ST. PETERSBURG, June 6 (RIA Novosti) - The Russian Economic Development Ministry forecast inflation in June to hit 0.6% with possible deflation later in the year, a deputy economics minister told journalists on Saturday at the economic forum in St. Petersburg.

"The inflation rate in June-July will slow and will be lower than last year and in May," Andrei Klepach said in Russia's second-largest city, adding that by the end of summer Russia could experience a deflationary period.

"In August and September we could see deflation. But by the year end inflation will once again return," the official said.

Figures published by the Russian State Statistics Service said inflation for the five months of the year had hit 6.8% and forecast an annual rate of 13%.

However, earlier the country's finance minister announced that inflation in Russia could ease to lower levels than previous years and even be lower than the forecast of 13% for the year.

Klepach also told journalists that the economic ministry expected the $1 exchange rate to average 34 rubles in 2010.

The deputy minister said that the figures in May for net capital inflow, which hit $2 billion, were not an indicator and that other months could see an outflow of capital.

"I am not ruling out that in several months it [capital inflow] could again be negative," said Klepach.

The economics ministry has forecast outflow could stand at $70 billion in 2009.

The minister also called an oil price of $60 per barrel "the most realistic forecast for 2010."