Quotes from Barclays Capital:
– Russia inflation surged to 11.4% y/y in December, compared to 9.1% in November and 6.5% a year ago. This was slightly higher than the consensus forecast of 11.2%.
– Food inflation remains the most affected category, having more than doubled in the past year to 15.4% y/y, reflecting both RUB depreciation and the partial sanctions on food imports that Russia imposed. Other (non-food) goods inflation also almost doubled to 8.1% y/y in December. Services prices are up 10.5% y/y.
– The pass-through from RUB depreciation has been very rapid, as is common during an extreme selloff of this kind. We expect further acceleration of inflation in Q1 15 as RUB depreciation pass-through continues.
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