Russia's State Statistics Service said inflation accelerated in 2008 even though consumer price growth slowed to 0.7% in December last year compared with 1.1% in 2007.
The Russian government initially predicted consumer price growth at 8.5% in 2008, but had to revise its forecast several times. The government's last official inflation forecast for 2008 was approved at 11.8%.
Consumer price growth in 2008 was driven by an increase in the cost of medicines (16.4%), tobacco (16.1%), bread and bakery products (25.9%), pasta (33.8%), meat (22.2%), sunflower oil (22.1%) and alcohol (10.9%), the State Statistics Service said.
Food prices increased 16.5% overall in 2008 (15.6% in 2007), the State Statistics Service said. Non-food prices went up 8% (6.5% in 2007) and the cost of services grew 15.9% compared with 13.3% in 2007.
