A single-site dynamic spin correlation function in paramagnetic iron is considered, taking into account electron-electron correlation effects in the single-site approximation of multiple scattering theory. Correlation effects significantly change the spin correlation function, especially at low frequencies, and have allowed the authors to obtain, in the energy interval 0<or=h(cross) omega <or=0.1 eV, the value 1.3 mu _B of the local magnetic moment, in accordance with polarised neutron scattering experiments. The damping time for the spin correlation function is estimated to be approximately 10^-13 s, which greatly exceeds the electron hopping time, approximately 10^-15 s.