Annual inflation in Russia in January will be about 10%


Moscow. January 20. The Ministry of economic development predicts that following the results of January inflation in Russia in annual terms will decrease to about 10%, at the end of 2016 in scenario average annual oil prices at $40 a barrel, inflation is expected at 8.5%, said the representative of the Ministry.

As has informed on Wednesday Rosstat, inflation in Russia from 12 to 18 January was 0.2%, YTD is 0.5%. In annual terms inflation by 18 January decreased approximately to 11.8% from 12.3% on January 11 and 12.9% at the end of 2015.

“Since the end of last year, noted that inflation processes have become more highly susceptible to falling of solvent demand of the population. The impact of the devaluation process gradually weakens. This trend in January continued in the beginning of the year a weekly speaker at the December and 0.2% for the week. According to our estimates, in January annual inflation will be approximately in the range of about 10%,” – said the Ministry.

“The scenario of oil price to $40 per barrel in the baseline scenario envisages inflation rate of 8.5%,” – said the representative of the Ministry.

The CBR in mid-December forecast inflation in 2016 in the baseline at $50 per barrel in the range of 5.5-6.5% and inflation at 7% in risky scenarios at the price of $35 per barrel.

The Ministry of economic development in the baseline scenario with $50 per barrel in 2016 and expects inflation of 6.4%.

The Ministry of Finance, in turn, has suggested to consider for the baseline scenario for 2016 the price of oil at $40 a barrel. The Ministry of economic development believes that to determine the baseline scenario for 2016 is necessary in April.