Annual inflation in Russia slowed down to 11.57% in the week from January 10 to 16

Annual inflation in the week from January 10 to January 16 slowed to 11.57%, should from the review of the Ministry of Economic Development on the current price situation.

“In the week of January 10-16, 2023, inflation slowed to 0.15% after rising by 0.24% over the period from January 1-9. Average daily price growth also slowed to 0.021% after rising by 0.027%. In annual terms, inflation continued to decline (to 11.57% y/y),” the review notes.

In the food products segment, price growth slowed down to 0.22%. Resumed decline in prices for meat products, oils and fats, eggs and flour, continued to fall in price sugar, pasta and cereals. At the same time, an increase in prices was noted for dairy products after a decrease in prices a week earlier.

Among non-food products, prices increased by 0.18% during the reporting week. Electric and household appliances went up in price – 2.36%, the growth in prices for clothes and underwear, shoes resumed after the price reduction a week earlier. At the same time, passenger cars continued to fall in price (-0.15%).

Russian President Vladimir Putin stressed earlier today that inflation in 2022 was less than 12%. “There are, in simple terms, their ambushes. If we completely lower inflation, then there may be certain failures in the economy. The Central Bank proceeds from the fact that it will be somewhere in the region of 5-7%,” the head of state said.

The Minister of Economic Development Maxim Reshetnikov earlier said that by the end of 2022, inflation in Russia amounted to 11.9%. He clarified that this indicator was achieved due to the stabilization of prices in the agricultural sector, high yields and the development of distribution channels. The Ministry of Economic Development also expects that in the first quarter of 2023, inflation in the country will “substantially decrease year on year”, already in the second quarter, the agency predicts inflation below the target level of 4%.