Core Inflation Still Heading Higher

We are revising down our end-year inflation target from 40.0% to 32.0% as the headline inflation rate continues to lag the core rate due to pervasive price controls. However, we believe that core inflation will reach our 40.0% end-2009 target and continue to advance to 50.0% in 2010 due to the continued destruction of production capacity and still-high monetary expansion.

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