Page 43 - RusRPTFeb19

due to recently adopted Opec+ extraction limits.
In the meantime manufacturing output slowed down, posting 0% y/y growth
after the surprising jump to +2.7% y/y in October.
"Based on the narrow sample of goods that Rosstat provided in the flash industrial output report, the deceleration in November was seen in construction materials and the production of electrical equipment," VTB commented.
4.2 Inflation
Inflation in Russia in 2018 will exceed the official forecast of the Ministry of Economic Development of 3.4%, but will fit into the target of the Central Bank and will be 3.9-4%, said Economic Development Minister Maxim Oreshkin in December. “Our forecast is 3.4%, it is clear that [inflation] does not fit. But the fact that this will be about 3.9-4% at the end of the year is what we see now, ”the minister said.
A rapid rise in prices for fruit and vegetables, Oreshkin explained, had a serious impact on the acceleration of inflation. “If you look at core inflation, cleared of seasonality, it is below the level of 4%, that is, there are no risks for price dynamics,” he added.
43 RUSSIA Country Report February 2019 www.intellinews.com