Annual inflation in Russia in January slowed to 9.7–10%

Annual inflation in Russia in January slowed to 9.7–10%


The main factor restrained price dynamics in December was the restrictions on the demand side, offsetting the impact of accelerated depreciation is reported by the Bank of Russia.

MOSCOW, 20 Jan. Annual inflation in Russia in January, according to preliminary estimates of the Bank of Russia will slow down to 9.7–10%, according to regulator comments on the current economic situation.

“In January 2016 inflation will continue to decline to 9.7–10.0 per cent (by January 2015)”, — stated in the message.

The Bank of Russia notes that the main factor restrained price dynamics in December was the restrictions on the demand side, offsetting the impact of accelerated depreciation. In early 2016 amid falling global energy prices, the ruble fell, that could create a Pro-inflationary pressures, higher inflation is constrained by weak demand and a reduction in the sensitivity of price dynamics to exchange rate fluctuations in terms of free float of the ruble.

According to operational information of Rosstat on the dynamics of prices at the beginning of the year, entry into force 1 January foreign trade restrictions on Turkey in terms of number of food commodities has had on prices noticeable effect. In these circumstances, it is expected that in January 2016 the growth of consumer prices in rolling annual terms slowed again.