Russian Inflation Slows to Near 2-1/2-Year Low in July

Consumer prices in Russia increased 7.2 percent year-on-year in July of 2016, following 7.5 percent growth in the previous month. It was the lowest reading since March 2014 and below market expectations of 7.4 percent. Housing and utilities, and recreation and culture prices rose at a slower pace while food cost accelerated. On a monthly basis, prices went up 0.5 percent.

Prices grew at a slower pace for housing and utilities (+6 percent from +8.5 percent in June); clothing and footwear (+9.5 percent from +9.6 percent); recreation and culture (+9.9 percent from +11.4 percent); alcoholic beverages and tobacco (+9.6 percent from +9.9 percent) and furnishings and household equipment (+7.7 percent from +7.8 percent). 

Food and non-alcoholic beverages prices increased by 6.4 percent year-on-year in July (+6.1 percent in June) while transport inflation was stable at 6.7 percent.    

Meanwhile, annual core inflation rate decreased to 7.4 percent from 7.5 percent in the previous month. 

On a monthly basis, consumer prices rose 0.5 percent, compared to 0.4 percent growth in the previous month, led by higher prices of housing and utilities (+3.5 percent); transportation (+0.6 percent); clothing (+0.2 percent); furnishings (+0.2 percent) and restaurants and hotels (+0.4 percent). In contrast, food cost dropped 0.2 percent. 

Russian Inflation Slows to Near 2-1/2-Year Low in July

Federal State Statistics Service | Yekaterina Guchshina |
8/4/2016 2:25:54 PM