Consumer price growth in December accelerated to reach double-digit values, hitting 11.4% y/y and 2.6% m/m vs. 9.1% y/y and 1.3% m/m seen in November, according to preliminary data by RosStat. The acceleration in price growth in December was faster than anticipated, as headline inflation was expected to approach 10% in Q1/15 by both officials and analysts. RosStat is going to provide full data on January 12.
While previously inflation was expected to moderate in July, Russia's food embargo and a spin in geopolitical tension seen in August-September, have worsened the outlook on price growth. Inflationary expectations spiked in October-December as the ruble tracked global oil prices, sinking by 30%-40%.
In December, according to preliminary data, food prices continued growing, increasing by 15.4% y/y and 3.3% m/m. The pace of price growth in the service sector also accelerated notably to 10.5% y/y and 2.2% m/m.
While the Central Bank of Russia’s mid-term inflation target is 4%-5%, the forecast for 2014 has been revised upwards from 6% to over 7%, to over 8.5%. Most recently the CBR officials admitted that annual inflation is going to approach 10% in the end of 2014 and beginning of 2015.
CPI inflation, y/y |
Dec-08 |
Dec-09 |
Dec-10 |
Dec-11 |
Dec-12 |
Dec-13 |
Jan-14 |
Dec-14 |
TOTAL |
13.3% |
8.8% |
8.8% |
6.1% |
6.6% |
6.5% |
6.1% |
11.4% |
Food |
16.5% |
6.1% |
12.9% |
3.9% |
7.5% |
7.3% |
6.5% |
15.4% |
Non-food |
8.0% |
9.7% |
5.0% |
6.7% |
5.2% |
4.5% |
6.5% |
8.1% |
Services |
15.9% |
11.6% |
8.1% |
8.7% |
7.3% |
8.0% |
7.8% |
10.5% |
Source: RosStat |
|
|
|
|
|
|
|
|
Russia’s second-largest bank state-controlled VTB posted a 33% year-on-year decline in net IFRS profit to RUB61.3bn, according to a report by the bank. VTB still plans ... more
In the wake of the devastating terrorist attack at Crocus City Hall, Russian President Vladimir Putin has admitted that Islamic extremists carried out the attack on concert-goers at the Crocus City ... more
Russia’s largest bank state-controlled Sber (Sberbank) posted RUB120bn ($1.3bn) for February 2024 under Russian Accounting Standards (RAS), up by 5% month on month. For 2M24 Sber’s bottom line of ... more