Russia: Inflation drops further to new historic low
May 4, 2012
In April, consumer prices rose 0.3% over the previous month. The result was half the 0.6% increase recorded in March and slightly undershot market expectations. The monthly increase was mainly driven by a pick-up in non-food prices. As a result of the subdued April reading, annual headline inflation inched down to 3.6% from 3.7% in March, marking yet another post-Soviet era record low. The core consumer price index, which excludes short-term price changes influenced by administrative and seasonal factors, rose 0.4% in April, a notch below the 0.5% rise recorded in March. Despite the monthly increase, annual core inflation dropped from March's 5.5% to 5.3% in April. The government expects inflation to end the year between 5.5% and 6.0%.
Author: Armando Ciccarelli, Head of Data Solutions