Russian inflation averaged 11.4 % in 2014

Inflation staged a dramatic pickup in November and December. Preliminary Rosstat figures show food prices increasing at an on-year rate above 15 % in December. Non-food goods were up 8 % and services over 10 %.

The pick-up in inflation at the end of the year reflected the ruble’s sharp depreciation and the ensuing frenzy of household spending. Following the ban on certain categories of food imports last autumn, food prices have risen even if no food shortage has actually emerged.

Representatives of food producers and retail chains committed in September to a government initiative that their members would not raise prices without good reason or create artificial shortages in the market. There has been no move by the government as yet to impose price controls as in 2010. The agreement could have limited price increases somewhat.

Consumer price inflation, %, January 2013 – December 2014

Source: Rosstat