Russia: Inflation drops in June on lower food prices
July 5, 2011
In June, consumer prices added 0.2% over the previous month, which was down from the 0.5% increase recorded in May and slightly below market expectations of a 0.3% rise. Lower prices for food products, particularly lower fruit and vegetable prices (-3.15% month-on-month) were the main factor behind the monthly price drop. As a consequence of the moderate June price increase, annual headline inflation fell to 9.4%, after remaining unchanged at 9.6% over the previous two months. Meanwhile, the core consumer price index, which excludes short-term price changes influenced by administrative and seasonal factors, rose 0.3% in June, lifting annual core inflation from 8.3% in May to 8.4% in June. The government targets inflation to end the year between 7.0% and 7.5%.
Author: Armando Ciccarelli, Head of Data Solutions