Official inflation forecast rises

Russia's Economic Development Ministry has raised its inflation forecast for the current year.

The new inflation target is 11.8% compared with the previous 10.5%.

The inflation estimate for 2009 has also been raised to 7.5-8%.

Meanwhile, presidential aide Arkady Dvorkovich said inflation in Russia won't exceed last year's level when consumer prices rose by 11.9%.

Dvorkovich also admitted high inflation remains the biggest short-term risk for the Russia economy.