Armenia and Russia boasted the lowest inflation rates (consumer price index) in 2017 across the Eurasian Economic Union (EAEU) that includes also Belarus, Kazakhstan and Kyrgyzstan, the Eurasian Economic Commission, the executive body of the EAEU said. According to it, the annual inflation in Armenia was 2.6%, in Russia it was 2.5%.
Consumer prices in Armenia in December 2017 grew by 2.6% year-on-year with food products (including alcoholic beverages and tobacco products) growing by 5.3%, non-food products by 1, 7%, while services dropped by 0.5%. In general, inflation across EAEU in 2017 did not exceed the ceiling set by the Treaty on the Eurasian Economic Union. The threshold inflation for the Russian-led bloc at the end of 2017 was 7.5%.
In Belarus, Kazakhstan and the Russian Federation the growth rate of consumer prices declined. Thus, one of the main macroeconomic indicators – the level of inflation – was in the zone of macroeconomic stability.
In Armenia and Kyrgyzstan deflation was replaced by a moderate increase in prices as a result of the recovery of economic activity and domestic demand.
“The reduction of inflation and the convergence of its rates in EAEU member states was facilitated by the implementation of economic policy measures, including a set of recommendations developed by the Eurasian Economic Commission,” the report said.
Thus, according to the Eurasian Economic Commission, the inflation in Russia was 2.5%, 4.6% in Belarus, 3.7 in Kyrgyzstan and 7.1% in Kazakhstan.