The Central Bank reported on food inflation in January in the amount of 11.1 percent
Photo: Alexander Kryazhev / RIA Novosti
Food inflation in January continued to grow and reached 11.1 percent. This category of goods, as in previous months, made the main contribution to the overall price increase. This is reported by TASS with reference to the materials of the Central Bank.
The regulator attributed the trend to pressure from the costs of manufacturers and suppliers, which, in turn, is associated with accelerated growth in world prices in the face of inelastic demand. Headline inflation rose to 8.7 percent in annual terms, which is 0.3 percentage points higher than in December.
Prices for services in January rose by 5.4 percent, although inflation in the segment decreased in December. In many respects, the weakening of the ruble exchange rate, which is connected with the situation around Ukraine, affected the rise in prices for imported goods and services.
The Central Bank notes an increase in the balance of risks towards pro-inflationary ones. The estimate of inflation for the year was raised to 5-6 percent. Achievement of the target level of 4 percent has been postponed until mid-2023. Back in October 2021, the Central Bank expected that inflation would drop to 4 percent by the end of 2022.
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On Friday, February 11, due to the continued rise in prices, the regulator decided to raise the key rate to 9.5 percent. The head of the Central Bank, Elvira Nabiullina, stressed that further tightening of monetary policy is possible if prices continue to rise.
According to Rosstat, inflation in January amounted to 8.73 percent. Shortly after this assessment, the Ministry of Economic Development decided to revise annual inflation from 4 to 5.9 percent. Thus, at the beginning of the year, the history of 2021 repeats itself, when Russian departments repeatedly raised their forecast for price growth, but in the end they still underestimated it.
