Inflation in Russia in January rose by a record 5%

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Since early January, 2019 the index of consumer prices in Russia went up cheerfully, an increase of 5% yoy. According to Rosstat, in comparison with December 2018 January’s results are disturbing: on a monthly basis, consumer prices in Russia increased by 1%. Goods and services in December rose on an annual basis, almost identical – in each of these segments, consumer prices rose by 5% by January 2018.
Most grew food prices (5.5% y / y while excluding fruit and vegetables, traditionally rising in price in January, price growth was only 5.2%). Prices of manufactured goods in January increased only 4.5% year-on-year. In January, continued to go up “the fatal eggs”, which became one of the main boosters of the December inflation was not far behind and the price of sugar. These products, if you believe Rosstat, rose by 26.9% and 30.9%, respectively.
Jumped up in January, prices for meat and poultry (10.6%), in addition, according to Rosstat, pork, which fell in January even 0.4% (this is probably in anticipation of the upcoming year of the Pig or wild Boar on the Eastern calendar). Increased prices for fruit and vegetables (7.3%), bread (5.8%), and almost all other types of food. The only types of food that rose not very much – vegetable oil (growth on 1,8%) and, oddly enough, alcoholic beverages, has risen in price, despite the long holidays in January, only 1.9%.
Gasoline in January 2018 rose by 9.8% yoy, compared with December rose in price, according to Rosstat, only 0.8%. Also much more expensive on an annual basis, of tobacco products (9.9% annualized), and prices of other goods grew about the limits to growth of non-food inflation.
Personal inflation in January, the population, according to the Bank of Russia estimated at 10.1%, that is twice higher than the data of Rosstat. We believe that by the end of the current year consumer price inflation to be 5.2-5.5 per cent.
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Natalia Milchakova,
Financial analyst,
Alpari