Putin: Russian inflation could near 8% this year

Annual inflation may approach 8% in Russia this year, President Vladimir Putin said on Thursday, a day before the central bank is widely expected to hike interest rates to 16% to rein in price rises.

Most analysts polled by Reuters expect the Bank of Russia to raise its key rate by 100 basis points to 16% on Dec. 15, with inflationary pressure exacerbated by labour shortages and lending growth in addition to soaring government spending and a weak rouble.