Monthly consumer price growth declines

Monthly consumer price growth rates significantly declined in February after the acceleration registered the month prior; the growth of annual indicators slowed down. This fact indicates, among other things, that the pass-through of the VAT hike to prices has largely completed. However, according to the latest issue of ‘Consumer Price Dynamics: Facts, Assessments and Comments’, certain deferred effects may manifest themselves in the months to come.

In February, annual inflation rose to 5.2% from 5% in January. Seasonally adjusted monthly consumer price growth slowed down from 0.8% in January to 0.4%.

Fruit and vegetable price movements were the main driver of inflation growth,  due in part to the low base effect. Prices of other food products showed mixed dynamics driven primarily by specific factors.

Annual growth rates of non-food prices and services increased only slightly (by 0.1 pp). At the same time, prices of oil products (petrol, diesel and gas motor fuel) went down. Growth rates of utility prices stabilised in February.