Inflation and Monetary Policy

In December the pre-Christmas growth in foodstuffs prices and in transport tariffs provoked acceleration of inflation, which made 0.5% within the month (against 0.4% in December 2011). As a result, by the end of 2012 the inflation rate made 6.6%, having matched the recent official forecast of the RF Central Bank. In January 2013 the increased excise duties and continued seasonal growth in prices for fruit and vegetables resulted in significantly accelerated growth rate of consumer prices: over the first three weeks of the month it amounted to 0.6%. In 2012 the monetary base in broad definition remained virtually unchanged, but by the end of the year it has significantly increased: only in the last month of the year it increased by 19%. Therefore, within the year its growth rate made 14% (against 5.5% in 2011). In the Q4 2012 capital outflow from the country has accelerated, having reached $9.4bn. After the Bank of Russia has reviewed the balance of payments for the first three quarters of 2012, the tentative estimate of the net outflow of capital as of 2012 results amounted to $56.8bn, as compared with $80.5bn in 2011.