Russia’s consumer price inflation increased to 5 percent year-on-year in January 2019 from 4.3 percent in the previous month, but slightly below market expectations of 5.2 percent. It was the highest inflation rate since January 2017 after the government raised VAT to 20 percent from 18 percent.
Within the goods component, food cost advanced 5.5 percent in January, following a 4.7 percent rise in December and prices of non-food products rose 4.5 percent, after a 4.1 percent gain in the previous month. Also, services inflation picked up to 5.0 percent in January from 3.9 percent in December.
Annual core inflation rate climbed to 4.1 percent in January from 3.7 percent in the previous month. It was the highest rate since April 2017.
On a monthly basis, consumer prices increased 1 percent in January, compared with a 0.8 percent gain in December and also missing market consensus of 1.2 percent. Upward pressure came from all main categories: food (1.3 percent vs 1.7 percent); non-food products (0.6 percent vs 0.2 percent); and services (1.1 percent vs 0.4 percent).
2/6/2019 1:15:04 PM