Inflation in Russia under control

The Central Bank of Russia expects inflation to slow down in the second half of 2013 and will be 5-6 %. If this happens, the rise of consumer prices in the current year can be a record low for the last twenty years.

Current inflation is expected to slow down not only in 2013, but also in the beginning of next year. The risks, however, still remain.

According to Federal State Statistics Service, inflation in Russia since the beginning of the year has reached 4%. The growth dynamics of prices for goods and services corresponds to the last year dymamics. In 2012, in the second week of July the inflation was 4%.

From 2 to 8 July, prices increased by 0.2%. From the beginning of July there was 0.5% growth. Such a large figure can be easily explained by the indexation of tariffs that happened July 1. According to Federal State Statistics Service, electricity prices rose by 1.4%, for certain types of public services – by 0.7-1.5%; and rents in state houses increased by 0.5%.

If forecasts becomes true, it will be a new record, the last record was in 2011, when the increase of consumer prices in the country was the lowest in the history of the new Russia – 6.1%. In 2012, inflation amounted to 6.6%.

Source: www.retailer.ru