KIEV, Oct. 10 – Inflation in Ukraine in 2007 could rise to over 12% if the local authorities start increasing tariffs on municipal services, according to Oleksiy Blinov, director of the economic analysis department at the International Center for Policy Studies.

"May be today or tomorrow we'll hear statements of some local authorities on the increase in tariffs in the nearest two or three months. If this happens, inflation could reach 12%, and even could exceed this barrier, if the process spread everywhere," Blinov said on Tuesday.