Russia: Inflation picks up to highest level in 18 months
March 5, 2013
In February, consumer prices rose 0.6% over the previous month, which was down from the 1.0% increase recorded in January. The increase stemmed from faster growth in prices for both goods - in particular food items - and services. Despite the more moderate monthly increase, annual headline inflation rose from 7.1% in January to 7.3% in February, marking the highest level since August 2011.
The core consumer price index, which excludes short-term price changes influenced by administrative and seasonal factors, rose 0.4% in February, which was below the 0.5% rise recorded in January. Annual core inflation was stable at February's 5.7%.
The government expects inflation to end 2013 between 5.0% and 6.0%, while expecting inflation to be in a range of between 4.0% and 5.0% at the end of 2014. FocusEconomics Consensus Forecast panellists see inflation ending 2013 at 6.0%, which is down 0.1 percentage points from last month's forecast. In 2014, participants expect inflation to moderate to 5.6%.
Author: Armando Ciccarelli, Head of Data Solutions