Brief Inflation Overview for January,2024

Traditionally food products contribute significantly to inflation dynamics accounting for 36.1% (meaning, out of the total 9.5% inflation, 3.4% is attributed to food products). However compared to April and May 202 when the contribution of food products was at its maximum their share in the overall inflation dynamics has decreased by 18.9 percentage points from 55% to 36.1%. Since February, 2023 this decrease amounted to 15.3 percentage points. Meanwhile compared to the previous month the share of food products decreased by 0.2 percentage points. The share of non-food products dropped from a peak of 32% in June to 26.8%.

Paid services account for 37.0% of inflation which is 0.8 percentage points higher than in December and represents the highest level in recent years. In December of 2023 the share of paid services was 20.2% of the total inflation.

In the non-food product group the highest price growth is observed for personal care products, furniture and household items – by 11.8%, clothing and footwear – by 11.1%, pharmaceutical products – by 11.7%, dishes – by 10.6%, and building materials – by 7.3%. Diesel fuel showed an increase of 14.3%, gasoline – by 13.6%, and liquefied gas – by 13.5%.

In the field of paid services prices have risen for services of comprehensive recreatio.organizations by 16%, sanatorium services by 16.1%, services in the field of recreation and sports events by 13.6%, hairdressing and personal care establishments by 13.6%, healthcare services by 13.2%, educational services by 10.2%, and catering services by 7.9%. Passenger rail transport services increased by 10.7%, air transport by 9.2%, and taxi fares increased by 10.1%.

Tariffs for waste removal increased by 29.6%, wastewater removal – by 28.6%, central heating – by 26.7%, hot water – by 23.2%, cold water – by 21.9%, electricity by 20.7%, payment for housing maintenance – by 7.8%. Therefore housing and communal services increased by 13.8%. Overall there is a further slowdown in inflation on a high base from the previous year. However, the inflation of paid services continues to accelerate, increasing its share in overall inflation.