Russia: Inflation inches down in February
March 4, 2011
In February, consumer prices added 0.8% over the previous month, which was a significantly below the 2.4% increase recorded in January. Higher food prices were the main driver behind the monthly price increase. As a result of the subdued February reading, annual headline inflation inched down from 9.6% in January to 9.5%, which was below market expectations of a 9.7% increase. The core consumer price index, which excludes short-term price changes influenced by administrative and seasonal factors, rose 0.7% in February, lifting annual core inflation from 7.2% in January to 7.4% in February. On 19 February, Finance Minister Alexei Kudrin declared that inflation may exceed the 7.0% inflation target set by the government for this year. Earlier in the month, Development Minister Elvira Nabiullina had stated that the government might revise the target for 2011, depending on the first quarter inflation reading.
Author: Armando Ciccarelli, Head of Data Solutions