Inflation in Russia during the New Year holidays accelerated to 0.24%

MOSCOW, Jan 11 (Reuters) – Inflation in Russia accelerated to 0.24% between January 1 and January 9, 2023, from 0.12% in the week leading up to the New Year holidays, mainly due to higher tariffs and prices for fruits and vegetables, Rosstat said.

In 2022, from January 1 to January 10, consumer prices grew more than twice as fast as this year – by 0.56%, and in general increased by 0.99% in January last year.

Prices for fruits and vegetables in the first nine days of January accelerated to an average of 6.5% from 2.3% in the New Year’s week.

The payment for housing in the houses of the state and municipal housing funds increased by an average of 1.8%. Tariffs for metro travel on average in Russia increased by 7.1%, tram – by 5.1%, trolleybus – by 2.3%, city bus – by 2.1%.

The cost of a flight in the economy class cabin of an aircraft, according to Rosstat, decreased by 8.5% after rising by 5.5% the previous week.

Inflation in the Russian Federation at the end of 2022 amounted to 11.9%, the head of the Ministry of Economic Development Maxim Reshetnikov said on Wednesday, and in the second quarter of this year, annual inflation may temporarily drop below the target of the Bank of Russia – 4%.

The Central Bank predicts consumer price growth in 2023 in the range of 5-7%.

Economists at Renaissance Capital Sofya Donets and Andrey Melashchenko expect the inflationary background to remain low, with inflation slowing down to 3.0% yoy in the spring and reaching 4.6% at the end of the year.

“Inflationary pressures have remained low in recent months. Partial mobilization was one of the factors behind this. The picture of a slow recovery in demand, in our opinion, does not create excessive inflationary pressure for 2023. The disinflationary trend is also supported by supply expansion and lower cost pressures,” they wrote in the review. (Daria Korsunskaya)

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