9 Apr 2014 17:01

Inflation in Russia remains at 0.2% in week of April 1-7

MOSCOW. April 9 (Interfax) - Russia had 0.2% inflation in the week of April 1-7, the Federal State Statistics Service (Rosstat) said on Wednesday.

It is the ninth straight week inflation has held at that level. Inflation was 0.1% in each of the three week preceding that streak.

Inflation was 1.0% in March, 0.7% in February and 0.6% in January. Annualized inflation rose to 6.9% in March from 6.2% in February.

Prices rose 0.2% in the first seven days of April compared with 0.1% in the same period last year. Inflation totaled 0.5% in April 2013. Inflation so far this year totals 2.6%, up from 2% in the same period last year.

The latest data indicates annualized inflation on April 7 ticked up to 7.0% from 6.9% on March 31.

Prices for pork rose 1.0% in the week and were up 0.9% for sugar, and 0.5%-0.8% for milk, tvorog, rice, millet, wieners, sausage, fish, butter, sour cream and vodka.

Fruit and vegetable prices were up an average of 0.4%, including 1.5% for tomatoes, 1.3% for potatoes, 0.7% for carrots and 0.6% for onions, while cucumber prices fell 3.0%.

Gasoline prices rose 0.2%, but the cost of diesel fuel went down 0.1%.

Prices also declined 0.4% for eggs, 0.2% for mutton and 0.1% for sunflower oil.

The Economic Development Ministry now expects annualized inflation to rise to a peak of 7.5% in June, after which it will slow to 6% by year-end. Accordingly, its inflation forecast for full-year 2014 is 6.0%, up from 4.8% previously.

Central Bank Chairman Elvira Nabiullina, speaking at the Exchange Forum at the end of March, warned that the Central Bank's target of 5% for the full year would be exceeded somewhat, finishing the year in the 5%-6% range.

Analysts are also starting to revise their inflation forecasts upward, owing to ruble weakening this year. They believe inflation will equal 5.7% in 2014, according to the consensus forecast compiled by Interfax at the end of March (up from 5.0% according to the forecast at the end of February). However, the distribution of individual forecasts is quite broad, ranging from 4.5% to 7%.