"The government is facing two objectives: to cut inflation and prevent the rapid appreciation of the national currency," Alexander Zhukov said. "We will work to tackle both tasks simultaneously."
The government adjusted its 2006 inflation target earlier this year from 8.5% to 9%. Last year's figure was 10.9%.
A forecast for the country's social and economic development until 2009 prepared by the Economic Development and Trade Ministry projects inflation at 6.5%-8% in 2007, 4.5-6% in 2008 and 4-5.5% in 2009. President Vladimir Putin said in 2003 that he wanted to see inflation at 3% within a decade.
Some economists have said even the ceiling for 2007 will be difficult to sustain and have also argued that 9% is a normal inflation rate for a briskly developing economy.
But Central Bank First Deputy Chairman Alexei Ulyukayev said Wednesday inflation was slowing year on year due to the de-dollarization of the Russian economy, which already stood at $5 billion in 2006, with the funds converted into rubles.
He also said that lower inflation was also attributable to the Central Bank's monetary measures and the government's policy of controlling the charges of infrastructure monopolies.
Ruble appreciation has been one of the measures used by the Central Bank to contain inflation, which some experts criticize as ineffective, although investors in Russian debt have reaped rewards as ruble-denominated bond yields have outpaced European counterparts.
The ruble's real appreciation in January-August 2006 was 11.3% against the U.S. dollar and 5.5% against the euro.