Presidents Alexander Lukashenko of Belarus, Leonid Kuchma of Ukraine and Vladimir Putin of Russia in 2004
Photo: Ilya Pitalev
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Russia Drives Regional Inflation
The Statistical Committee of the CIS published data on the growth of prices in the region. Russian inflation, economists say, has contributed to higher prices in neighboring states due to its close trade ties and the higher prices it demanded for energy. The only CIS member state that did not experience a rise in the consumer price index this year through September was Armenia, which, on the contrary, experienced 0.2-percent deflation during that period.
Price rises were most extreme in Tajikistan, which had a 12.3-percent rise in the first nine months of the year. It was followed by Azerbaijan with 11 percent, Kyrgyzstan with 10.3 percent, Moldova with 9 percent, Kazakhstan and Ukraine with 8.6 percent, Georgia with 6.2 percent and Belarus with 5.4 percent. Inflation was higher in the first none months of this year than in the corresponding period of last year in all countries except Moldova and Armenia.
Economists note that an autumn spike in inflation is a post-Soviet Eastern European phenomenon due to the high share of foodstuffs in the consumer price index – 40-50 percent, as compared to 10-20 percent in developed countries. Analysts note that the low level of inflation in Moldova is largely due to the fact that vegetables remain inexpensive in that country through the autumn. Monetary policy in Armenia was centered around controlling inflation, and not stabilizing the local currency, as in Russia and Ukraine. Inflation in Armenia in October was 3.1 percent.
www.kommersant.com
All the Article in Russian as of Nov. 08, 2007
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