Russia's annual inflation will near 9 percent by year end, Russian Economy Minister Alexei Ulyukayev said Monday.

"The inflation is likely to approach 9 percent by the end of the year," Ulyukayev told the Ekho Moskvy radio station.

"The situation will be even more acute at the beginning of 2015, as the rate may exceed the initial forecast by about 3.5 percentage points and stand at nearly 10 percent by the end of March 2015," Ulyukayev added.

Ksenia Yudayeva, the first deputy chief of the Central Bank of Russia, said on Thursday that Russia's annual inflation has reached 8.6 percent.

The Russian Central Bank said at the end of October that inflation rate would remain over 8 percent until the end of first quarter of 2015 with its pace in September-October exceeding forecasts.

In September, the Central Bank increased its forecasts on inflation in 2014 to 7.5 percent, "or higher" from the earlier outlook of 6.5 percent.

Moreover, Ulyukayev said that ruble's equilibrium exchange rate is expected to be 41 to 43 rubles per U.S. dollar.

"The equilibrium exchange rate should be at a level that makes it possible to offset the balance of payment shocks without big fluctuations, which I think will be in the range from 41 to 43 rubles per U.S. dollar," Ulyukayev said.

An exchange rate of 41 to 42 rubles per dollar will suffice to guarantee a positive current account balance as well as the repayment of foreign loans by 2015, according to Ulyukayev.

He added that due to current inertia, it would be right to have a bigger account balance to offset negative effects with a bigger margin.