Russia: Inflation falls to six-month low in June
In June, consumer prices remained flat on a monthly basis, compared to May’s 0.3% month-on-month increase. According to Rosstat, the reading reflected lower prices for food products offsetting higher prices for services and non-food items.
Inflation fell to 4.7% in June, from 5.1% in May. June’s result marked the lowest reading since January as well as the third consecutive month of easing inflation. This signaled that the effects from January’s VAT hike that pushed up inflation at the outset of the year continued to fade, partly thanks to soft consumer demand dynamics.
Meanwhile, annual average inflation remained on the upward trend, surging to a 21-month high of 4.3% in June, from 4.1% in May.