By inflation we mean a general rise in prices throughout the economy (Sloman 2009: 388). The most usual measure is that of the CPI (Consumer Price Index), measured by the percentageincrease each month, over the previous 12 months.
The government aim is to keep inflation low and stable. In the US the target is between 1.7% and 2% (Torres, Bloomberg 2011), while in Russia is 6% to7% (Abelsky, Bloomberg 2011).
Over the previous 12 months the index has fallen 1.3 percent. This is the largest decline since April 1950 and is due mainly to a 27.3percent decline in the energy index. The food index decreased for the fourth consecutive month. The index for all items less food and energy has increased 1.8 percent over the last 12 months.
Dec 2009Over the previous 12 months, the index increased 2.7 percent before seasonal adjustment.
Indexes for food, energy, and all items less food and energy all posting modest increases.
Over theprevious 12 months, the all items index increased 1.5 percent before seasonal adjustment.
The gasoline index rose sharply and accounted for about 80 percent of the all items seasonally adjustedincrease.
Over the previous 12 months, the all items index increased 3.9 percent before seasonal adjustment.
Increases in energy and food indexes were the main cause of the seasonallyadjusted all items increase. The gasoline index continued to rise, and indexes for electricity and natural gas increased as well.
The inflation rate in Russia waslast reported at 9 percent in September of 2011. From 1991 until 2010, the average inflation rate in Russia was 175.36 percent reaching an historical high of 2333.30 percent in December of 1992 and arecord low of 5.50 percent in July of 2010. (http://www.tradingeconomics.com/russia/inflation-cpi)
Inflation and exchange rates stabilized due to a prudent fiscal policy (Russia ran a budget...