Russia: Inflation continues to fall in March: reaches lowest level in nearly two years
April 5, 2016
Consumer prices rose 0.5% in March over the previous month. The monthly increase was the slowest in seven months and came in below the 0.6% increase observed in February and the 0.6% rise the markets had expected. The Federal Statistics Service reported that the monthly reading reflected a slower increase in prices for food, particularly of fruits due to an oversupply in markets.
Inflation fell from 8.1% in February to 7.3% in March, which represented the lowest level since April 2014. Inflation began to decline in free fall in August 2015from a peak of 15.8%. The rapid fall in inflation toward the end of 2015 and in the first quarter of 2016 continues to reflect a favorable base effect and a recent stabilization in the Russian ruble. That said, inflation remains well above the Central Bank’s target of 4.0%.
Author: Ricardo Aceves, Senior Economist