"Drivers of growth in grain prices were the regions of southern Russia, and Central and North-Western Federal district, where the price indices are the highest in the country. This was facilitated by active exports, due to increased world prices and a new round of devaluation of the ruble and high demand for wheat of all classes from the livestock and poultry sectors, which already in the fall experienced a shortage of raw materials due to the insufficient supply of grain for sale," reads a press release from ICAR.

According to the agriculture Ministry, since the beginning of the year average prices (without VAT) for wheat of class 3 has not changed and remained at level of 10 thousand 705 roubles for ton. Wheat 5 class is worth 9 thousand RUB 176 per tonne, feed barley — 9 thousand 450 rubles per ton. The price of wheat of class 4 for the two weeks of January increased by 2% to 9 956 thousand rubles per ton.

Recall from 2019 VAT in Russia was increased from 18% to 20%. According to Rosstat estimates, between 1 and 9 January, the price increase was 0.5%. The Bank of Russia expects inflation in the first quarter of 2019 at 5.5–6% in annual terms, with a subsequent slowdown.