Since early March prices rose by 0.2 per cent compared with 0.4 per cent over the same period last year and 1,3 per cent in total for March 2009, according to Rosstat.

From the beginning of the year Rosstat recorded inflation of 2.7 per cent (4.5 per cent a year earlier).

Analysts Bank Trust felt that at present, yoy inflation is only 7.0 per cent, which is the absolute minimum in the modern history of Russia.

During the first two months of 2010 consumer prices in Russia grew by 2.5 per cent, significantly less than last year’s level, when inflation in January – February reached 4.2 percent.

As in February, the main influence on the rate of inflation is now providing food prices. According to the Federal State Statistics Service, over the past week have risen in price eggs – by 2,3 percent, buckwheat, cheese, milk drink – by 0,6-1,6 percent.

increase in prices for fruits and vegetables averaged 1.1 per cent. This onions grown by 3.2 per cent, carrots and cabbage – by 2,8 percent and 2,1 percent respectively.

cheaper margarine, sugar, chickens – at 0, 1-0,3 percent.

prices for gasoline rose by 0.1 per cent for diesel fuel – have not changed.

minus 25 B . VP

At the end of the month will again show inflation at record low level – 0,7-0,8 per cent, analysts expect the trust, which will update a minimum rate of inflation in annual terms, and this , in turn, will give CB a serious argument for lower rates.

Member of the Board of Directors of Central Bank Sergey Shvetsov said on Thursday that the central bank will consider the bids in the second half of March.

“Apparently, the Bank will wait for release of data on the state of the real economy, to be published next week. At the same time it becomes clear how rapidly rising prices in the second week of March – analysts believe the trust.

“In this case, we expect that macrodata will not be good enough to convince the Central Bank to abandon cuts. If we add to the strengthening of the ruble, then the probability of cuts we see as very high” — write analysts.

At the same time, the Central Bank will remain cautious, and lower rates may be only 0.25 percentage points.

Reuters poll of analysts expected that the end of March refinancing rate can be reduced by another 25 basis points from the current 8.50 per cent, and by the end of the second quarter – by another 50 basis points.

Central Bank reduced the rate of 10 once in 2009, but then took a pause. In 2010, the Bank of Russia has lowered key interest rates only once. From 24 February they fell by 25 basis points, disappointing analysts who had expected more decisive steps by the Central Bank.

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