Russian prices flat for 3rd straight month in Oct

Consumer prices in Russia stayed flat in October for a third straight month of zero inflation, the federal statistics agency said Tuesday, opening the door for further interest rates cuts by the central bank.

The zero inflation since August has been largely attributed to a weak economy and a slump in consumer demand.

The Central Bank has cut interest rates eight times since April this year in an effort to offset the severe impact of the global downturn and match low inflation levels. It cut the refinancing rate last week from 10 to 9.5 percent.

The Central Bank's first deputy chairman, Alexei Ulyukayev, said earlier this month that the bank may lower rates below 9 percent in 2010 depending on the pace of inflation.

Russia technically emerged from recession in the third quarter as its economy grew 0.6 percent from the previous three months in the first quarterly rise since the crisis struck a year ago. But despite the increase, gross domestic product was still 9.4 percent below year-earlier levels.

The Economic Development Ministry has forecast a 8.5 percent fall in GDP for all of 2009.