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Friday, December 21, 2007

Russian Inflation November 2007

Russia's inflation rate rose to a two-year high in November as the prices of fruit, vegetables and other food prices surged. The rate rose to 11.5 percent, the highest since October 2005, up from 10.8 percent in October, according to data released todat by the Federal Statistics Service.

Economy Minister Elvira Nabiullina indicated that the Russian government anticipate that consumer prices will increase an annual 12 percent this year, compared with last year's 9 percent rate. The Russian government's ``massive additional spending'' before this years elections also helped push up inflation by stoking up additional demand the Organization for Economic Cooperation and Development said earlier this month in a report. Legislators approved additional budget outlays this year as the nation prepared to hold parliamentary elections on Dec. 2 and a presidential vote in March 2008.

For a full and extensive analysis of the dynamics of Russia's growing inflation problem see this post here.

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