Inflation Stable – High
There is a consensus among economists that inflation in 2008 will be no less than 12 percent. Had there been any doubts about it, they were dispelled when Rosstat, the state statistics service, published inflation data for November. At 1.2 percent, it exceeded the maximum expected by the Ministry of Economic Development and Trade by 0.2 percent. It was the highest it had been since November 2002, when it hit 1.6 percent.
The inflation rate for November of this year was somewhat lower than that of October (1.6 percent), however. Food prices peaked in that month. Non-food prices in November rose 0.9 percent. Food remained an inflationary factor in November as well, rising in price by 1.9 percent. Fruit and vegetable prices contributed most to the prices. Without them, the price rise was 1.5 percent. They rose in price by an average of 6.2 percent. Other products that distinguished themselves were butter, up 4.3 percent; milk and dairy products, up 3.7 percent; pasta, up 3.3 percent; grains and beans, up 2.0 percent; and sunflower oil, up 2.3 percent. Only sugar became cheaper. It fell by 1.6 percent. Gasoline was also a major factor, up 2.3 percent because of the large difference between its wholesale and retail prices. Cloth rose by 1.3 percent. Clothing and shoes were up 1.2 percent. Paid services rose 0.6 percent.
Economists note that December inflation has exceeded November's in recent years. Nor do they see how the government will be able to slow that pace next year – it will not reduce spending (it will, on the contrary, rise) or tighten monetary policy. The Economics Ministry predicts 7.5-8-percent inflation for 2009, however.
www.kommersant.com
All the Article in Russian as of Dec. 06, 2007
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