Russia: Inflation moderates in September and reverses direction from two months of rise
October 6, 2015
In September, consumer prices rose 0.6% over the previous month, which was up from the 0.4% increase in August. The reading fell short of the 0.7% rise the market had expected. According to the Federal Statistics Office (Rosstat), the faster increase resulted from higher prices for food as well as for clothing and footwear.
Despite the monthly increase, annual inflation moderated from 15.8% in August to 15.7% in September, reversing direction after two months of increase. The result were welcome news for Russian monetary authorities, who delayed further interest rate cuts in its latest meeting in September.
That said, inflation remains well above the Central Bank’s 4.5% inflation target for this year. However, in its last monetary policy statement, the Bank said that it expects inflation to fall more rapidly than previously estimated and sees it falling to 12.5% at the end of this year and to 7.0% by mid-2016.
Author: Ricardo Aceves, Senior Economist