Russian cenbank plays down deflation risks before rate-setting meeting

MOSCOW (Reuters) - Inflationary expectations in Russia have increased in the past few months, making it inappropriate to speak of risks of deflation, Central Bank Deputy Governor Alexei Zabotkin said on Monday.

Consumer prices declined in June in month-on-month terms and annual inflation slowed to 15.9% from 17.1% in May, data showed last week, ahead of the July 22 board meeting where the central bank is expected to cut its key rate from 9.5%.

(Reporting by Reuters)