OREANDA-NEWS. January 20, 2014. It is being kept within the inflation mid-term target of 5%. In December, inflation increased 0.8%, NBM informs. It explains the rise by seasonal factors and by more considerable increase in food prices. Food prices increased 1.8%, non-food ones and prices for services to people increasing by 0.3% and 0.1% respectively.

The annual core inflation made up 4.8% in December, up 0.1 p.p. as compared with the previous month. This means the absence of inflationary pressure on the part of aggregate demand. The monthly core inflation made up 0.3% in December, down 0.2 p.p. month-on-month.

Prices grew most on personal accessories, cloths, knitted wear, catering service and building materials. In December prices for foodstuff grew 1.8% as compared with the previous month. In particular, the price grew 17.7% for potatoes;, 9.5% for fresh vegetables; 1.9% for milk and dairy products; 0.9% for fish and canned fish; 0.7% for meat, meat products and eggs. The growth was in part smoothed by the decline in sugar price by 0.8% and in fresh fruit by 0.2. The annual pace of growth in food prices was 7.6% in December, up 0.8 p.p. month-on-month. As NBM states, in December 2013 fuel prices stayed unchanged, including the prices for coal, firewood and bottled gas. However, the prices for combustible decreased 0.1%.

The annual pace of growth in fuel prices was 3.4% in December, up 0.1 p.p. month-on-month. Administrative prices grew 0.2% in December due to1.8% higher tariffs on urban transportation, 4.4% higher tariffs on international railroad transportation and 0.4% bigger prices for medicines. The annual pace of the administrative prices growth in December was 3%, staying unchanged as compared with the previous month.

The National Banks states it will continue strictly controlling the dynamics of the national economy and monitoring the international economic environment in order to ensure the goal of the mid-term monetary policy, namely to achieve and maintain the price stability by adequate using monetary policy instruments.