Russia: Inflation stabilizes in April at two-year low
May 6, 2016
Consumer prices rose 0.4% in April over the previous month, which was down from a 0.5% increase in March. The reading marked a third consecutive moderation and the slowest monthly increase in eight months. Moreover, April’s result undershot the 0.6% increase the markets had expected. According to the statistical office, the moderation in April reflected mainly a slower increase in prices for food products and energy.
In April, inflation stabilized at March’s 7.3% and remained at the lowest level since April 2014. Inflation began to decline in free fall in August 2015 from a peak of 15.8% and rapid fall in inflation was mainly the result of a favorable base effect, which appears to have faded in April. Moreover, the recent stabilization of the Russian ruble has helped to diminish inflationary pressures. That said, inflation remains well above the Central Bank’s target of 4.0%.
Author: Ricardo Aceves, Senior Economist