Official: Government measures slow down inflation, peak to come

MOSCOW, Feb 2 (PRIME) -- The government measures to cap the growth of prices for socially important goods have resulted in stabilization of inflation in monthly terms, but the peak is yet to come, the Economic Development Ministry said on Tuesday quoting Deputy Minister Polina Kryuchkova.

The latest data of the Federal State Statistics Service showed inflation staying at 0.2% for the second week in a row from January 19 through January 25, and reaching 0.8% since January 1.

“Having analyzed the incoming statistics, we see that the peak of inflation in annual terms is yet to be passed. We are comparing with the previous January, and it is explained by low base effect at the beginning of 2020,” Kryuchkova said.

“As a result of the Russian government’s measures to restrict the growth of prices for socially important goods, inflation has stabilized in monthly terms. Estimates of the market’s condition made by the Agriculture Ministry and the Industry and Trade Ministry allow us to suppose that a year-on-year contraction of consumer prices will start in the second quarter of 2021.”

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