16.02.2016, 01:21
Annual Inflation to Remain on Downward Track in February
OREANDA-NEWS. According to the Bank of Russia's preliminary estimate, inflation will decline to 8.3-8.7% in February year-on-year, as it is said in the Consumer Price Dynamics, information and analytical note of the Bank of Russia (No. 2, February 2016).
Nonetheless, inflation risks will persist. Specifically, the note says that, given economic uncertainty, households' inflation expectations are elevated.
The marked deceleration of the annual inflation registered in January (down to 9.8% against 12.9% in December 2015) is attributed to the high base effect, as in early 2015, prices soared. Another factor could be a drop in demand, which had not been influenced by the ruble volatility, as households did not rush to make hedge purchases of durable non-food goods.
Statistics evidence that anti-Turkey trade restrictions introduced from 1 January 2016 have not produced a negative impact on prices. According to estimates, tomato and orange prices declined (seasonally adjusted), bearing in mind the fact that a noticeable share of these products has been earlier imported from Turkey. In January 2016, overall food price growth (also, seasonally adjusted) reduced compared with December.
Nonetheless, inflation risks will persist. Specifically, the note says that, given economic uncertainty, households' inflation expectations are elevated.
The marked deceleration of the annual inflation registered in January (down to 9.8% against 12.9% in December 2015) is attributed to the high base effect, as in early 2015, prices soared. Another factor could be a drop in demand, which had not been influenced by the ruble volatility, as households did not rush to make hedge purchases of durable non-food goods.
Statistics evidence that anti-Turkey trade restrictions introduced from 1 January 2016 have not produced a negative impact on prices. According to estimates, tomato and orange prices declined (seasonally adjusted), bearing in mind the fact that a noticeable share of these products has been earlier imported from Turkey. In January 2016, overall food price growth (also, seasonally adjusted) reduced compared with December.
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