April Inflation Flat.

The inflation rate in April came to 0%, leaving inflation at last month’s 10.3% in annual terms. Services (+51.6% yoy), driven mostly by household tariffs (+72% yoy) and communication tariffs (+19.3% yoy) have been the main inflationary force for the last 12 months. Food products, the main component of the CPI basket, showed a modest 0.9% yoy growth. We stand by our 11% forecast for inflation growth in 2007.