Speaking at a meeting between President Vladimir Putin and Cabinet members, German Gref said, "Between July 1 and 17, inflation grew 0.4%. Last July, inflation was 0.5%."
Gref said a seasonal decline in prices for fruit and vegetables expected in August would substantially cut the inflation rate.
Retail trade in June increased 13.7% year-on-year, and by 11.3% during the first half of the year, the minister said. Investment grew 10% in June, and 9.4% in the first six months, which was a "good spur for growth in industrial output and GDP," the economics minister said.
The construction industry expanded 14.5% in June year-on-year, and 8.3% in the first part of 2006, Gref said.
The government plans to contain inflation at 9% in 2006 (compared to 10.9% in 2005), having upped the target from the initial 8.5%, and to cut it further to 6-7% in 2007, and to 4-4.5% in 2008.
