Russian Econ Ministry forecasts 0.6%-0.7% inflation in Feb
MOSCOW. Feb 11 (Interfax) - The Russian Economic Development Ministry forecasts 0.6%-0.7% inflation in Russia in February, according to the ministry's weekly report on the state of the economy, published on Monday.
In annualized terms, inflation will be 7.3%-7.4% in the second month of this year.
"According to the Russian Economic Development Ministry's estimate, in February the consumer price index will be 0.6%-0.7%, and 7.3%-7.4% for the yearly period (0.4% for the month in February 2012," the report said.
In January, Russia had 1% inflation (0.5% in the same month of 2012), the ministry said.
According to the Federal State Statistics Service (Rosstat), Russia had 0.2% inflation from January 29 to February 4. For the year as of February 4, inflation was 7.2%.
"In January, the growth in food prices strengthened. Price growth for the group averaged at 1.8% (0.9% in December 2012). For the last week [January 29 to February 4], prices grew by another 0.1%. For the yearly period, price growth was high - 8.6% as of February 4," the report said.
"Because of increased excise taxes and minimal prices for alcoholic products starting on January 1, 2013, prices for alcoholic beverages grew by 4.9% in January, which added 0.3 percentage points to inflation, and 0.4 percentage points to price growth for food. Vodka prices grew by 15.6% in January, and in February the growth continued. For the last week, growth was 1%," the Economic Development Ministry reported.
First Deputy Chairman of the Russian Central Bank Alexei Ulyukayev has said that inflation will approach its peak values throughout the month but will later decrease.
Inflation will return to the 6% target in the second quarter of this year, he said.
"I think that we have the possibility of returning to the target [5%-6% for annual inflation for 2013] in the second quarter, based on the dynamic of the monetary base and money supply," Ulyukayev said.
Analysts polled by Interfax at the end of January forecast inflation at 6.3% for this year.