Russia had the inflation of 2.3 percent in January.
Photo: Ivan Grankin
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Jan Inflation at 2.3 Percent
Russia had the inflation of 2.3 percent in January, Interfax reported with reference to official statistics. The RF Finance Ministry had forecasted the inflation of 2.2 percent. The prices had grown 1.7 percent in January of 2007.
It was the cabbage that led the price growth in the first month of this year, having manifested the increase of 20.3 percent, while the price for potatoes stepped up 13.4 percent. The prices for bread and bakery increased 1.5 percent, eggs grew 3.2 percent, butter soared 2 percent but the prices for dairy sank 2.3 percent.
Apparently concerned about the acceleration of this extent, the Central Bank of Russia (CBR) hiked the refinancing rate from 10 percent to 10.25 percent from February 4. The rate went up first time in nearly ten years.
Fueled by the increase in food prices, the inflation surged past fall in Russia, bringing the annual indicator to 11.9 percent. In an effort to address the problem, the government forced producers to freeze prices for basic food till February 1. The agreement was extended for another three months, it emerged in January.
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