(For other news from the Reuters Russia Summit, click on http://www.reuters.com/summit/RussiaInvestment10)
MOSCOW, Sept 14 (Reuters) - Russia's central bank could hike interest rates in reaction to a summer drought that has pushed up prices and might cut 2010 economic growth by more than 1 percentage point, a Deputy Economy Minister said on Tuesday.
"I think the central bank may hike rates ... already this year in order to indicate that it is reacting, that interest rates are linked to inflation", Andrei Klepach told the Reuters Russia Investment Summit.
He added that the rate hike could happen once the central bank has evaluated the data for September.
Official forecasts call for consumer prices rising 7-8 percent. Klepach said inflation should be closer to 7.8-8 percent.
As a result of the worst drought in decades, Russia's economy as a whole will suffer, Klepach said.
"Taking into consideration the drought's impact on ... the pace of trade growth and other consequences ... (the effect on GDP) will probably be more than 1 percentage point," he said.
The Economy Ministry now sees this year's growth at 4 percent, having previously hoped it could be higher.
In the future, things could improve, Klepach said, forecasting that the grain harvest could recover to 85-90 million tonnes next year from the 60-65 million tonnes expected in 2010. That is in line with the Agriculture Ministry's targets. (Writing by Andrey Ostroukh and Lidia Kelly; Editing by Will Waterman)