Inflation in January reached 1.9% m-to-m, which pushed the y-to-y index to 4.2% (from 4.0% in December 2000). Net inflation, targeted by the central bank, reached 0.6% m-to-m and remained unchanged at 3.0% y-to-y, right in the middle of the central bank target of 2-4%. Inflation numbers are in line with our forecasts and do not change the inflation outlook dramatically: CPI should hover in a close range of 4.0-4.3% throughout the year and the net inflation should first fall during the spring to approx. 2.7% only to rebound back to 3% by the end of 2001. Thus, no reaction from the central bank is required or expected.