Thursday, January 6, 2011

Serious Inflation in Russia

Inflation accelerated to 8.7 percent in Russia in December, compared with 8.1 percent in November, according to Russia's Federal Statistics Service, in an emailed statement.

I know of a no government data service that has ever over-reported inflation. Russia is unlikely to be the first. Thus, if anything, this number downplays the true inflation.

My guess is that inflation in Russia is probably over 10%. This was the fifth consecutive monthly increase in Russia's inflation rate.

1 comment:

  1. A related comment on that is about recent promise by Russian govt to raise state-funded pensions to 8.7%.

    I also think, that it is quite unlikely that they are keeping pensions at the level of inflation: much rather pensions' increase is substantially lower than real inflation is.

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