Inflation Reaches 14.2% in 11M07

Yesterday the State Statistics Committee released CPI and PPI data for November. CPI lifted 2.2% mom reaching 14.2% YTD while PPI increased mere 1.0% mom totaling 19.5% YTD. Increases in bread, dairy products and fruits prices (4.1%, 8% and 8.3% mom, respectively) resulted in 2.3% food product inflation. Rising prices for fuel (9.1% mom) and heating services (10.6%) were the most significant non-food contributors to the inflation in November. Our forecast for CPI in 2007 is 15%.