Inflation and Monetary Policy

Significant slowdown in the growth rate in prices for non-food goods and maintained prices for commercial services at the level of the preceding month resulted in the fact, that the baseline inflation slowed down from 0.5 % per month in October to 0.3% in November (against 0.4% in November 2011). In December, due to the growth of consumer activity at the background of the New Year Eve, growth rate of consumer prices increased: consumer price index as of 17 days of the month made 0.3%, having matched the indicator of the same period of preceding year. As a result, the cumulative inflation since the beginning of the year amounted to 6.3% as of December 17 (compared to 6% in 2011). Herewith, from December 11, 2012 the Bank of Russia has again increased the interest rate on the RF CB ruble deposits on fixed terms by 0.25 p.p. up to 4.5% and decreased the rate of the RF Central Bank ruble transactions “currency swap” by the same amount to 6.25%