Bloomberg the Company

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Russian Inflation Slows to Post-Soviet Record of 4.2%

Don't Miss Out —
Follow us on:

Feb. 6 (Bloomberg) -- Russia’s inflation decelerated in January to the slowest annual rate since the Soviet Union collapsed two decades ago as food costs eased and the government delayed increases in utility tariffs.

Inflation was 4.2 percent from a year earlier, down from 6.1 percent in December, the Federal Statistics Service in Moscow said in an e-mailed statement today. Prices rose 0.5 percent from a month earlier. Economists forecast increases of 4.3 percent and 0.6 percent, two surveys showed.

Russia’s central bank last week refrained from cutting interest rates after a surprise reduction in December, noting the “temporary nature” of the price slowdown and signaling for the first time since August that borrowing costs may remain unchanged in the “coming months.” Prime Minister Vladimir Putin froze the tariffs until mid-year to solidify his chances for retaking the Kremlin in presidential elections next month, said Vladimir Tikhomirov, chief economist at Moscow-based Otkritie Financial Corp.

“The delay is a political decision linked with the electoral cycle to a large extent,” Tikhomirov said by phone. Price growth will start to accelerate this summer and may reach 6 percent by year-end, he said.

Central bank Chairman Sergey Ignatiev wants to trim the inflation rate to about 5 percent to 6 percent in 2012 from 6.1 percent last year. Prices and poverty are seen as the biggest threats facing the country this year, according to a Jan. 31 poll by the independent Levada Center.

To contact the reporter on this story: Stepan Kravchenko in Moscow at

To contact the editor responsible for this story: Balazs Penz at