From true economics:
As I noted earlier, Russian economy posted an estimated decline in real GDP of 0.5% in November for the first time since 2009, while Russian inflation accelerated to 11.4% y/y in December, up from 9.1% in November. Latest guesses for economic growth in 2015: -4.0% at average crude prices of USD60 bbl via Finance Minister, Siluanov. Previous estimate by CBR consistent with this oil price level was 4.5-4.7% contraction.
To reduce inflationary pressures and to alleviate 'precautionary demand' (stockpiling) of some core goods, the Government is considering imposing a freeze on some food prices, according to Andrei Tsiganov, deputy head of the Federal Anti-Monopoly Service.
Still, according to CBR First Deputy Governor Ksenia Yudaeva, long term inflation target remains in place at 4% by the end of 2017. Good luck to that…MORE
