Russia: Inflation moderates for a third consecutive month
September 5, 2011
In August, consumer prices were down 0.2% compared to the previous month, which was below the flat reading recorded in July. Lower prices for food products, which dropped 1.4% compared to the previous month, were the main driver behind the monthly reading. As a consequence, annual headline inflation fell from 9.0% in July to 8.2% in August, marking the third 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 August, mirroring the result recorded in July. Despite the monthly increase, annual core inflation dropped from July's 8.4% to 8.1% in August. The government is aiming for inflation to end the year between 7.0% and 7.5%.
Author: Armando Ciccarelli, Head of Data Solutions