OREANDA-NEWS. December 15, 2010. The basic annual inflation rate (for the last 12 months) in November this year was 4.5%, down 0.4 percentage points from the previous month and within the objective set for the end of the year, according to the National Bank press release.

The monthly inflation rate in November this year amounted to 0.6% caused by the rise in prices for foodstuffs by 1.2% and non-food goods – by 0.6%, while fees for services provided to the population remained on the previous month’s level. The monthly inflation rate evolution was mostly determined by the seasonal factor and preservation of the inflation pressure of prices for fuel and components of the basic inflation in November connected with it.

Last month, the basic inflation continued a progressive monthly rhythm started in the third quarter of 2010, reaching 0.4% compared to the previous month. It resulted from the rise in prices for major components of the basic inflation except for medicines and telecommunication services. The dynamics of prices for products and services included in the basic inflation in November was mostly due to the beginning of the cold period and the side effect of the rise in prices for foodstuffs.

Consumer prices growth for the last 12 months by 3.2 percentage points exceeded the basic inflation confirming the growing impact of non-monetary factors on the inflation process. Monthly growth of prices for foodstuffs in November 2010 was more moderate in comparison with September and October. The increase was 1.2% in comparison with the previous month mostly due to the higher prices for vegetable oil (9.7%), rise of prices for vegetables (9.4%) and potato (4.1%).

Prices for fuel in November this year brew by 1.2% in comparison with the previous month. Prices for fuel and liquefied gas remained on the previous month’s level. The National Bank notes that the recent rise in prices for some foodstuffs and petrol and diesel oil by about 0.8 leis and liquefied gas by 0.4 leis may entail some deviation from the 7.8% annual inflation rate forecasted by the National Bank for December.