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artificially inflating prices. It’s a matter of national security, the United Russia Duma deputy says.
4.2.1 CPI dynamics
CPI rate reached 5.7% y/y in February, the Central Bank of Russia (CBR) reported on March 5. This marks the highest level since November 2016.
Monthly inflation jumped to 0.8%, well above consensus estimates of 0.6% m/m.
The main driver of price growth was food (7.7% y/y in February), especially white sugar (64% y/y), eggs (28% y/y), vegetable oil (27% y/y) and cereals (21% y/y).
Prices of non-food consumer goods increased by 5.7% y/y, while the cost of communal services to the population rose by 2.9% y/y. Core inflation increased by 0.6% m/m and 5% y/y.
The CBR forecasts that the CPI trend could reverse as soon as March when the base factor reverses and pressures from the ruble’s devaluation start to subside.
45 RUSSIA Country Report April 2021 www.intellinews.com
