Russia Inflation Rate Falls to New Record Low

Russia's consumer price inflation dropped to 2.2 percent year-on-year in January 2018 from 2.5 percent in the previous month and below market expectations of 2.3 percent. It was the lowest inflation rate since the series began in 1991, well below the central bank's target of 4 percent.

Record-low inflation continues to provide the central bank with room to cut further its key lending rate from the current level of 7.75 percent.

Within the goods component, food inflation eased to 0.7 percent from 1.1 percent in December; and prices of non-food products rose by 2.6 percent, softer than a 2.8 percent gain in the previous month. Also, cost of services went up by 3.9 percent after a 4.4 percent increase in December.

Annual core inflation rate also declined to an all-time low of 1.9 percent in January from 2.1 percent in the previous month.

On a monthly basis, consumer prices increased by 0.3 percent, following a 0.4 percent gain in December and also missing expectations of 0.4 percent. Prices rose slower for food (0.5 percent from 0.6 percent in December) and services (0.1 percent from 0.3 percent) while non-food inflation was unchanged at 0.3 percent.

Russia Inflation Rate Falls to New Record Low

Federal State Statistics Service | Joana Ferreira |
2/7/2018 1:47:12 PM