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Inflation in Russia at 1.2% in Nov, 10.6% since start of year

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MOSCOW, December 5 (RIA Novosti) - Inflation in Russia totaled 1.2% in November, against 0.6% last November, the Federal Statistics Service said on Wednesday.

Consumer prices grew 10.6% in January-November, against 8.2% in the same period of 2006.

"The growth in prices for basic food products in November slowed down significantly against October," the service said in a statement.

In November consumer prices grew 1% in Moscow 1.7% in St. Petersburg.

Three Russian regions reported inflation at 2% in November, with the Kursk Region in central Russia seeing the highest price hikes at 3.5%.

According to estimates by the Finance Ministry and the Economic Development and Trade Ministry, inflation could hit 11.5% in 2007, much higher than this year's target of 8%.

In a recent report the World Bank said that the limited number of instruments for withdrawing excess monetary resources from the economy and the current policy of restricting the ruble's nominal appreciation, is making it increasingly difficult for Russian fiscal authorities to rein in inflation.

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