Russia: Inflation continues to fall in January
February 8, 2017
In January, consumer prices rose 0.6% from the previous month, overshooting the 0.4% increase in December. In its press release, the Federal State Statistics Service (Rosstat) stated that January’s result reflected a broad-based increase, with prices for goods rising 0.7% and prices for services increasing 0.4% over the previous month.
Inflation declined from 5.4% in December to 5.0% in January, which was the lowest level since June 2012. Russia’s Central Bank has played an important role in bringing down inflation as well as the stabilization of the Russian ruble.
The inflation trend confirms the downward trajectory: annual average inflation fell from 7.1% in December to 6.7% in January. Most analysts agree that the significant inflation slowdown in January suggests that weak household spending made a substantial contribution to the existing disinflation trend, offsetting the negative effect of the indexation of certain transportation tariffs and excise duties at the beginning of this year.
Author: Ricardo Aceves, Senior Economist