By Andrey Ostroukh

 

MOSCOW--Consumer inflation in Russia is set to slow further in February, the central bank said Friday.

Annual inflation is seen slowing to 8.3%-8.8% in February from 9.8% in January. Inflation has slowed to single-digit readings thanks to base effect and falling consumer demand, the central bank said.

On the flip side, risks to inflation remain in place due to high inflationary expectations among households.

Despite slowing inflation, the central bank's key target, the bank has warned it may hike interest rates to counter negative implications from the ruble's oil-driven weakness.

Write to Andrey Ostroukh at andrey.ostroukh@wsj.com

 

(END) Dow Jones Newswires

February 12, 2016 03:42 ET (08:42 GMT)

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