Rosstat (Russia’s State Statistics Office) with reference to Eurostat reported that in January 2011 inflation in Russia was the highest in Europe. In January 2011 the inflation rate was as high as 2.4%. The average inflation rate in 2010 was reported to be 8.8%.
As for food prices, during January-February 2011 they have risen by 3.2%, the annualized price growth in 2010 was 16.4%.
Source: http://top.rbc.ru/economics/
The European Union confirmed on Thursday that Russia could join the WTO within the next 12 months, following agreement to phase out Russian export tariffs on raw materials.
Russia’s willingness to phase out export duties on raw materials such as timber — which drive up the cost of inputs for European manufacturers such as the Nordic timber and paper industries — removes a European veto on Russia’s accession.
There are other hurdles remaining to tackle before accession, such as state payments to farmers and ceilings on beef imports entering the country at low tariffs. At some point Russia and other WTO members also will have to address Georgia’s objections to Russian membership of the WTO.
Source: www.themoscowtimes.com
Russia’s record heat wave and worst drought in 50 years may spur inflation and make economic growth more reliant on state support as factories suspend production and consumer demand slows. Agriculture accounts for about 4% of GDP and is the hardest hit part of the economy with the government declaring grain yields down 20% so far this year. At present, grain inventories are sufficient to restrain inflation, but some sort of negative cost impact is expected in third quarter of 2010 for the consumer space.
Source: www.themoscowtimes.com/index.php