Inflation Up 2.2% in June

According to the State Statistics Committee, in June the inflation rate showed its highest growth so far this year: 2.2% mom (versus 0.6% in May). Since the beginning of the year, the CPI came to 4.2%, driven by food products, the largest component in the CPI basket (58.5%), which rose by 5.9% yoy. The most growth was seen in potatoes, flour and sugar prices: 94.2%, 13.7% and 12.7% yoy respectively. In 6M07, prices for non-food products grew at a moderate pace of 0.3% while services rose 5.1%. The State Statistics Committee also reported that the producer price index in May came to 1.1% (For 6M07 the PPI came to 11%).