Russian inflation highest in 16 years

Russia's inflation rate in January hit a 16-year-old high record, statistic agency Rosstat said Thursday.

According to the agency report, inflation rate in January amounted to 3.9 percent, comparing to 2.6 percent in December 2014. The rate was considerably higher than Rosstat's forecast of 2.7 percent and economists' consensus outlook of 2.6.

The statistics showed a 6.5-time growth year-on-year, as in January 2014 inflation was only 0.6 percent.

This is the highest pace of inflation in Russia since February 1999, when consumer prices grew by 4.1 percent in one month.

According to Rosstat, consumer prices in Russia rose by 4.4 percent in January 2015, including food prices by 5.7 percent, as the annual growth rates of the two indexes reached 15.9 percent and 20.7 percent respectively.

January's inflation rate, thereby, contributed to an annual inflation forecast of 15 percent in 2015, the highest rate since September 2008.

The 15-percent forecast has approached the lower end of the peak inflation forecast given by the Economic Development Ministry, which stands at 15 to 17 percent on an annual basis in a time period from March to April in 2015.

Still, Economic Development Minister Alexei Ulyukayev said Thursday that the ministry has no plan to change its forecast and claimed the annual inflation rate of 2015 remained at 13.7 percent, according to Tass news agency. Endite