According to CBR data, t he broad definition monetary base dropped by 9.5% month-over-month in January, after a substantial hike of 15.3% in December. The indicator amounted to RUR2636 billion (US$93.7 billion) in January, up by 22.9% in year-on-year terms (22.4% in December). The monetary base surge in December is common every year, as holidays lead to extra shopping. Then, in January people suddenly reduce their shopping appetite, which drives down the monetary base. The tendency was to be observed last year, too.

The m/m drops in both broad-definition monetary base and money in circulation were almost the same as in Jan 2005. However, the inflation pressure still remains substantial. Correspondent accounts with CBR went down by 33.1% m/m in January and amounted to RUR340.1 billion (US$12.1 billion), against the 51.6% m/m increase in December. At the same time, deposits with CBR recorded a 355.6% m/m increase to RUR32.8 billion (US$1.17 billion) in January, compared to an 83.5% m/m drop witnessed in December. Holdings of CBR's 6-month OBR bonds surged by 130.5% m/m to RUR75.6 billion (US$2.7 billion) in January, after declining by 65.1% m/m in December.

As mentioned earlier, money in circulation dropped by 8.5% m/m to RUR2 trillion (US$71.5 billion) in Jan 2006, after a 16.3% m/m hike in December and following the January 2005 tendency (also an 8.5% m/m drop). Money liquidity expanded at the end of the last year, due to increased holiday spending. The January 2006 drop seems only to be a seasonal correction of the still upward trend.