CPI Monitor: Interfestum

Weekly inflation in Russia rose to 0.13% WoW over the February 20-26 period from 0.11% WoW the week before. The acceleration of price growth stemmed from a new round of growth in airfares, although this was partially offset by declines in prices for vegetables and electronic goods.
The holiday period has spurred demand to record highs, which may negatively affect price pressure. Moreover, the upcoming March 8 holiday may additionally boost consumption and thus put the key rate trajectory chosen by the CBR to a serious test.