Summary on Inflation for February 2024

The national consumer inflation continued its downward trend for the twelfth consecutive month, reaching its lowest point since February 2022. However, the monthly inflation rate accelerated, attaining an annual peak. 

Paid services contributed significantly to the inflation dynamics, accounting for 39.4% of the total inflation rate (meaning, out of the 9.3% total inflation, 3.7% is attributed to paid services), marking the highest contribution in recent years. In February of the previous year, paid services accounted for 20.1% of the total inflation.

The share of food items, traditionally the largest contributors to inflation, stood at 33.3%. Compared to April and May of 2022, when the contribution of food items was at its peak, their share in the overall inflation dynamics decreased by 21.7 percentage points from 55% to 33.3%. Since last February, this share dropped by 18.1 percentage points. Additionally, the contribution from food items diminished by 2.8 percentage points compared to the previous month. 

Annual price reductions were recorded for onions at 42.5%, buckwheat at 24.3%, sunflower oil at 21.2%, granulated sugar at 14.8%, and potatoes at 12%.

In the non-food category, the most significant price increases were noted in pharmaceutical products at 11.7%, furniture and household items, and clothing and footwear each at 11%, personal care products at 10.9%, tableware at 9.2%, and building materials at 6.9%. Diesel fuel prices rose by 14.5%, gasoline by 13.6%, and liquefied gas in cylinders by 12.9%.

Within the paid services sector, prices increased for comprehensive leisur.organizations by 21.5%, sanatoriums by 16%, healthcare services by 13.9%, recreation and sports services by 13.3%, hairdressing and personal service establishments by 13.1%, and mobile communication services by 12.4%. Taxi fares went up by 11.7%, urban bus transport by 9.3%, railway passenger transport by 8.7%, and intercity bus service by 8.2%. Air passenger transport costs decreased by 4%.

Rates for sewage disposal increased by 33.9%, central heating by 30.9%, cold water by 30.8%, waste removal by 30.7%, hot water by 29.4%, and electricity by 19.9%. Hence, utility services experienced a price rise of 14.4%. Overall, a further slowdown in inflation on a high base from the previous year is observed. However, both monthly inflation and inflation in paid services continue to accelerate, potentially leading to price growth stagnation and an uptick in inflation in the future.