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Inflation in Russia expected at 0.1%-0.3% in Sept.

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MOSCOW, September 25 (RIA Novosti) - Inflation will be between 0.1% and 0.3% in September, Russia's economics ministry said.

"Consumer prices rose 0.1% in September 1-11, and inflation is expected within 0.1-0.3%, as prices of fruits and vegetables have continued to fall," the Ministry of Economic Development and Trade said in its social and economic development monitoring report.

The government adjusted its 2006 inflation target earlier this year from 8.5% to 9%. Last year's figure was 10.9%.

The ministry said GDP grew 7.2% year-on-year in August, and 6.7% over the first eight months of the year. The indicator was 7.1% in July.

Industrial production rose 5.6% in August and 2.9% in July year-on-year, and 4.3% in the eight months of the year.

The ministry highlighted steady growth in investment in the economy, which stood at 12.6% in August and 11.1% in January-August.

"In terms of industrial production, GDP growth was caused by vigorous trade and construction and a rise in the output of the mining and manufacturing industries in August and in the production and distribution of electricity, natural gas and water," the document says.

Foreign trade turnover increased 27.6% in January-August year-on-year, to $292.8 billion, with a surplus of $99 billion.

Exports of goods expanded 28.2% year-on-year in the first eight months of 2006 to $195.9 billion. The ministry said imports of goods accounted for $96.9 billion in the reporting period, growing 26.4%.

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