Inflation Reaches 1.8% In February.

Cumulative inflation in January-February was 3.0%.  Concorde Capital: The main pressure on February consumer prices was exerted by the seasonal increase in food prices (+2.6%) while prices on non-food items and services remained almost unchanged. After a successful start in January (the month’s 1.2% CPI rate was the lowest in five years), February inflation accelerated to the highest it has been in the last five years. As a result the 2M06 cumulative CPI rate exceeded last year’s figure (2M05 CPI rate – 2.7%). The Economic Ministry recently worsened its CPI forecast for 2006 to 10-10.1% from the 8.7% set in the budget. We estimate annual CPI to be 10%.