Russia: Inflation falls to over-two-year low in September
October 4, 2016
In September, consumer prices increased 0.2% over the previous month, which was up from the flat reading registered in August. According to the Statistical Institute, the increase reflected higher prices for food as well as for nod-food products, particularly for tobacco and clothing.
Inflation fell from 6.9% in August to 6.4% in September, which marked the lowest level since February 2014. Inflation has been falling rapidly since August 2015, when it reached a peak of 15.8%. September’s result undershot the 6.6% the markets had expected. Inflation is on track to slow to below 6.0% by the end of the year, which is within the Central Bank’s forecast of between 5.0% and 6.0% but is still well above the Bank’s 4.0% target. The inflation trend confirms the downward trajectory: annual average inflation fell from 10.1% in August 9.3% in September.
Author: Ricardo Aceves, Senior Economist