Weekly inflation in Russia accelerated to 0.21%

Inflation in Russia in the week from January 24 to 30 accelerated to 0.21% after 0.14%, follows from the materials of Rosstat.

Since the beginning of January, consumer prices have risen by 0.74%. In January 2022, monthly growth was 0.99%, Rosstat noted.

During the specified period, prices for fruits and vegetables increased by an average of 3.5%, while onions rose in price by 7.8%, cucumbers – by 7.6%, carrots – by 3.4%. Sausages went up by 0.8%, pasta and canned vegetables for baby food – by 0.6%, and lamb and cottage cheese – by 0.3%. At the same time, prices for buckwheat groats (-1.3%), canned meat for baby food (-0.6%), chicken meat, rice and black tea (-0.3%) decreased.

Matches (+0.9%), toilet paper (+0.5%), washing powders (+0.3%), dry pet food (+0.2%) went up in the segment of hygiene and essential goods , while diapers fell by 0.4%. In the group of consumer goods, prices for children’s jeans (+0.3%), T-shirts and men’s socks (+0.2%) increased, while smartphones (-1.3%), TVs (-1.1%) and electric vacuum cleaners fell in price (-0.5%).

Allohol (+0.6%), Validol, Corvalol, Rengalin and Ergoferon (+0.2%) increased in price among the medicines monitored by Rosstat. Airfare increased by 4.2%.

At the end of 2022, inflation in Russia amounted to 11.94% after 8.39% in 2021. This year, the Ministry of Economic Development expects inflation at 5.5%. According to the forecast of the Central Bank, it will be 5-7%. In December 2022, inflation in monthly terms amounted to 0.78% (the relatively high rate was affected by the transfer of indexation of housing and communal services tariffs from summer 2023 to 2022) after 0.37% in November, 0.18% in October and 0 .05% in September. In the summer, Rosstat recorded deflation for three months.

As wrote earlier than Vedomosti, the stagnation of demand became one of the key economic problems in late 2022 – early 2023. Last week, Minister of Economic Development Maxim Reshetnikov made a report on this issue at a meeting with Russian President Vladimir Putin.

The position presented by the Ministry of Economic Development expressed concern about the stagnation of demand and low inflation illustrating this problem. Price increases since September last year have been well below 3%, while live cash register data show a decline in demand in real terms year-on-year. The key task for 2023 was the restoration of demand, the main indicator of which in the current situation is inflation, the sources said.