Russia: Inflation jumps to 5.0% in January after VAT hike

In January, consumer prices rose 1.0% from the previous month, above the 0.8% increase recorded in December and the sharpest rise in three years. According to Rosstat, higher prices for food products and services drove January’s result.

Inflation soared to 5.0% in January, notably above December’s 4.3% and the highest reading since June 2017. An increase in the value added-tax and a weak ruble have stroked price pressures. That said, January’s reading was below the 5.2% expected by market analysts.

Annual average inflation edged up to 3.1% in January from December’s 2.9%.

Russia Inflation Forecast

FocusEconomics panelists see inflation ending 2019 at 4.6%, which is up 0.2 percentage points from last month’s forecast. For 2020, participants expect inflation to end the year at 3.9%.