CBR: Inflation At 5.61% in January

UrBC, Moscow, February 14, 2019. The Central Bank of Russia adjusted its forecast of the annual trend inflation rate from 5.4% in December 2018 to 5.61% in January 2019, the bank’s website states.

According to the trend inflation assessment methodology, the forecast can get adjusted every now and then in response to temporary factors affecting price dynamics, the bank explains. Among such temporary factors is the VAT increase, for example, which results in increase in prices of goods and services that are used as the basis for assessing the trend inflation. This is the primary factor behind January figures.

As the trend inflation is rising more slowly than the noticeably growing consumer prices (on the annual scale), it can be inferred that these are mainly temporary factors that contribute to increasing annual inflation rate.

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