Russia: Inflation soars to highest level in almost two years
June 4, 2013
In May, consumer prices rose 0.7% over the previous month, which was above the 0.5% increase recorded in April. The increase stemmed from higher growth in prices for both goods, in particular food products, as well as for services. As a result of the monthly rise, annual headline inflation rose from 7.2% in April to 7.4% in May, the highest level in 21 months.
The core consumer price index, which excludes short-term price changes influenced by administrative and seasonal factors, rose 0.3% in May, which was down from the 0.4% increase recorded in April. Annual core inflation rose from 5.7% in April to 5.9% in May.
The government expects inflation to end this year at between 5.0% and 6.0%, while expecting it to end 2014 in a range of between 4.0% and 5.0%. FocusEconomics Consensus Forecast panellists see inflation ending 2013 at 6.0%, which is unchanged from last month's forecast. In 2014, participants expect inflation to moderate to 5.8%.
Author: Armando Ciccarelli, Head of Data Solutions