Russia: Inflation picks up to highest level in eight months
September 4, 2012
In August, consumer prices rose 0.1% over the previous month. The result, which marked the lowest month-on-month reading in almost a year, came in below both the 1.2% increase recorded in July and market expectations of a 0.2% rise. The figure was mainly driven by a moderation in food prices and the fading base effect of the increase in tariffs that took effect last month. Despite the moderate monthly increase, annual headline inflation rose from 5.6% in July to 5.9% in August, the highest reading in eight months. The core consumer price index, which excludes short-term price changes influenced by administrative and seasonal factors, rose 0.6% in August, slightly above the 0.5% rise recorded in July. As a result of the increase, annual core inflation inched up from July's 5.3% to 5.5% in August.
Author: Armando Ciccarelli, Head of Data Solutions