Russia 2017 Inflation Rates Compared with Eastern European Union

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Armenia and Russia boasted the lowest inflation rates (consumer price index) in 2017 across the Eurasian Economic Union (EAEU), which includes Belarus, Kazakhstan, and Kyrgyzstan, according to the Eurasian Economic Commission, the executive body of the EAEU. The annual inflation recorded in Armenia was 2.6 percent, in Russia it was 2.5 percent.

Consumer prices in Armenia in December 2017 grew by 2.6 percent year-on-year with food products (including alcoholic beverages and tobacco products) growing by 5.3 percent, non-food products by 1.7 percent, while services dropped by 0.5 percent. In general, inflation across the 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 percent.

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. According to the Eurasian Economic Commission, the inflation in Russia was 2.5 percent, 4.6 percent in Belarus, 3.7 percent in Kyrgyzstan, and 7.1 percent in Kazakhstan.

“The impact of sanctions and the drop in oil prices has now largely been absorbed by Russia and the Western EAEU members, such as Armenia and Belarus”, says Chris Devonshire-Ellis of Dezan Shira & Associates. “They are now more in line with EU rates in inflation, which adds an extra layer of security for EU investors and procurement managers looking to source from the Western EAEU members. Russia’s consumer price index performed better than most of its regional EU neighbors, suggesting the economy is on the rebound, and that the country is entering into a period of some financial and pricing stability, which is good news for investors from Europe.”


2017 Inflation Rates In Eurasian Economic Union Compared With European Union
Country Inflation Rate %
France 1.1
Spain 1.1
Italy 1.23
Germany 1.75
Russia 2.5
Armenia 2.6
United Kingdom 2.9
Kyrgyzstan 3.7
Belarus 4.6
Kazakhstan 7.1
2017 Inflation Rates In Eastern Europe
Finland 0.78
Poland 2.07
Bulgaria 2.5
Latvia 2.9
Romania 3.0
Estonia 3.4
Lithuania 3.5


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