UPDATE: Ministry says Russia’s GDP growth speeds up in January

(Provides new headline, paragraphs 1, adds paragraphs 2-5, 10-12)

MOSCOW, Mar 14 (PRIME) -- Russia’s gross domestic product (GDP) growth accelerated to 2% in January as compared with 1.4% in December thanks to industrial production recovery, and amounted to 1.2% in annual terms in October-December, the Economic Development Ministry said in a research note on Wednesday adding.

Industrial production growth amounted to 2.9% in January.

In 2017, GDP increased 1.5% according to preliminary information of the Federal State Statistics Service.

The ministry also said that Russia’s inflation may reach 2.1-2.2% in April-May and fall below 2% in June to stay at no more than 4% in the entire 2018 if there are no weather-related shocks.

The ministry said that inflation is to reach 0.2-0.3% or 2.2-2.3% in annual terms in March.

The Federal State Statistics Service said that consumer prices rose 0.1% for a second consecutive week from March 6 through Monday, and inflation reached 0.6% since January 1.

In the reported week, prices for eggs and millet grew 1.1% and 0.5%, respectively. Sausages inflated 0.3%. Prices for buckwheat decreased 0.7%, while prices for pork, chicken and sunflower oil went down 0.2%.

Prices for fruit and vegetables grew 1.1% on average. Potato, cabbage and carrot prices rose 2.6-3.7%, whereas prices for fresh cucumbers dropped 0.2%.

Gasoline and diesel fuel prices remained flat.

Consumer inflation and monetary inflation remained unchanged on the month in February at 2.2% and 2.5%, respectively, according to the ministry.

The central bank said that Russia’s foreign trade surplus rose about 40% on the year to U.S. $17 billion in January.

Exports grew 31.3% on the year to $33.4 billion in January and imports rose 20.4% to $16.4 billion.

End