Annual inflation in Russia has slowed to almost 10.5% – RBC

Photo by Alexander Ryumin / TASS

During the week from 19 to 25 January 2016 prices in Russia, according to the Federal State Statistics Service posts, rose 0.2%. Since the beginning of the month and year price increase was 0.7%. On average, every day, inflation is added 0.028%, which is more than four times slower than in January last year (0,122%).

The sharp slowdown in inflation provided a daily reduction of inflation accumulated over the last year. Overall, in 2015, inflation was 12.9% in the first 25 days – about 3.05%. Thus, the annual inflation rate for January 25, 2016 has slowed to about 10,55%.

The head of the Ministry of Economic Development Alexei Ulyukayev during a meeting with Russian President Vladimir Putin gave a forecast that by the end of January 2016 inflation in annual on-year will be about 10%.

Earlier, the Central Bank reported that, according to preliminary estimates, in Russia in January 2016, the annual inflation rate to fall to 9,7-10%.

Slow week inflation has helped lower prices for some types of products. In particular, pork per week from 19 to 25 January fell by 0.5%, chicken and rice – by 0.1%, cucumbers – by 2%, tomatoes – by 1.6%. Prices for gasoline and diesel fuel fell for the week by 0,1%.

At the same time, prices for sugar over the past week have increased by 1%, the price of frozen fish, sour cream, cheese, candy chocolate, tea – 0.3%. The increase in prices of fruits and vegetables has averaged 0.5%, including for white cabbage – 2.2%, carrots – 2%, apples – 1,3%.

Earlier, the chief economist of the European Bank Reconstruction and Development Sergei Guriev warned that in 2016 the Russian government will have to raise taxes to reduce budget costs and to use inflation as a tool for increasing revenues in the budget.

«As usual, the effects of high inflation felt by the poor population “, – said Guriev.

Earlier, the threat of inflation in Russia, warned participants in the World Economic Forum in Davos.