Russia: Inflation drops for second consecutive month
August 5, 2011
In July, consumer prices were unchanged compared to the previous month, which was down from the 0.2% increase recorded in June and below market expectations of a 0.1% rise. Higher prices for non-food products and services offset lower prices for food products. As a consequence of the flat reading, annual headline inflation fell from 9.4% in June to 9.0% in July, marking the second consecutive drop in inflation and the lowest reading since December 2010. That said, the core consumer price index, which excludes short-term price changes influenced by administrative and seasonal factors, rose 0.4% in July, up from the 0.3% rise recorded in June. Despite the monthly increase, annual core inflation was unchanged at June's 8.4%, the highest level since December 2009. The Government targets inflation to end the year between 7.0% and 7.5%.
Author: Armando Ciccarelli, Head of Data Solutions