Inflation Hit 11.9% Last Year

The country's inflation rate rose in 2007 to the highest in four years as the government failed to quell a jump in food prices and wages and investment soared.

The rate for the year rose to 11.9 percent from 9 percent in 2006, the first time that the rate surpassed the previous year since 1998, the State Statistics Service said in a statement Wednesday. Consumer prices rose 1.1 percent in December, compared with a 1.2 percent advance in November.

Russia has struggled to curb inflation as record oil sales boosted salaries and global food prices increased.

The government cut dairy and vegetable oil import duties, sold grain from state reserves and added a grain export duty. Companies including Wimm-Bill-Dann and X5 Retail Group agreed in October to freeze prices on some milk, vegetable oil, egg and bread products until Jan. 31.