Page 32 - RusRPTMar20

4.2.1​ CPI dynamics
Inflation slowed to 2.4% y/y in January. ​According to an official estimate, inflation was 0.4% m/m in January. This was substantially lower than the 1.0% m/m registered a year before, so in y/y terms inflation slipped to 2.4% from 3.0% in December.
Food prices gained 0.7% m/m (2.0% y/y) in January, which was attributable mostly to seasonal acceleration in fruits and vegetables (prices were up 5.7% m/m). Meanwhile, prices on non-food items and services were each up 0.2% m/m (2.5% and 2.8% y/y, respectively).
Core inflation (i.e. inflation with seasonally affected items stripped out) was 0.2% m/m in January, which would give an annualized figure of 2.0-2.5% depending on rounding.
Planned additional social spending should boost inflation in 2H20. These expenditures are expected to include compensation for unpaid social payments for the period after they were announced but before the corresponding law was signed. As a result, Sberbank analysts see headline inflation finishing this year at 3.0% y/y, versus the CBR's forecast range of 3.5-4.0%.Inflation slows to 2.4% y/y in JanuaryAccording to an official estimate, inflation was 0.4% m/m in January. This was substantially lower than the 1.0% m/m registered a year before, so in y/y terms inflation slipped to 2.4% from 3.0% in December.
4.2.2​ PPI dynamics
Producer price inflation also remains low and as industry is expected to take a hit from global pandemic fears is likely to remain low in 2020.
4.3​ Industrial sectors and trade 4.3.1​ Producers PMI
Russia’s services sector continued to outperform the manufacturing ​and support the Composite PMI index, IHS Markit reported on February 5.
Previously, the ​manufacturing PMI continued to show weakness in January
32​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com