Russia: Inflation decelerates in July to lowest level in over five years
August 4, 2017
In July, consumer prices rose 0.1% from the previous month, easing from June’s 0.6% increase. According to the Federal State Statistics Service (Rosstat), the result was largely due to lower prices for fresh fruit and vegetables and weaker price pressures on other components.
Inflation came in at 3.9% in July, below both June’s 4.4% print and market expectations of 4.4% inflation. The print is the lowest since May 2012 and inflation is now below the Central Bank of the Russian Federation’s target rate of 4.0%. A stabilization in the ruble has helped support easing price pressures and annual average inflation declined from 5.4% in June to 5.1% in July, the lowest reading in over four years.
Author: Lindsey Ice, Economist