Despite the tight
demand management policies of the Central Bank,
inflation exceeded the original expectation for the year
due to several factors. The tight monetary policy
measures of the Central Bank helped to reduce inflation
gradually during the first half of 2007. However, the
substantial increase in international market prices of
oil, the complete removal of fuel subsidies since July
2007 and sharp rises in several other commodity prices
in international markets led to an upward adjustment in
domestic prices of several goods and services. Central
Bank Annual Report 2007
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