Russia’s PPI down to 1.9% y/y in September.

By bne IntelliNews October 16, 2013

Industrial PPI of 1.9% y/y and 1.4% m/m is reported for September by RosStat. In both y/y and m/m terms producer prices growth declined notably as compared to 4.6% y/y and 2.8% m/m seen in August. Previously in H1/13 overall producer prices grew by 3.5% y/y.

The data is in line with previous PMI indexes that showed low price pressures on manufacturers and service providers and stagnating industrial activity. Manufacturing PPI went down to 0.7% m/m and 1.4% y/y in September vs. 1.7% m/m and 2% y/y in August.  

Slowing PPI also supports the Central Bank’s of Russia (CBR) confidence that consumer price inflation is going to meet the target of 5%-6% by the end of the year. CPI was estimated by the central bank at 6% y/y as of October 6.

CPI inflation in September 2013 remained moderated to 6.1% y/y and 0.2% in m/m terms, according to the report by RosStat. Previously in July and August inflation stayed unchanged at 8-month low 6.5% y/y. In May, annual monthly inflation hit 21-month high at 7.4% y/y.

At the same time for 2014, the CBR increased its inflation target for 2014 from previously set 4.5% to 5%. In a revised monetary and credit policy guidelines for 2014-2016 the CBR notes that government’s decision to increase the utilities tariffs for households in 2014 makes the previous 4.5% inflation target unfeasible. Complying with the target is not possible without tougher monetary policies which would endanger already weak growth, the CBR argued. 

Related Articles

Multilateral lender IIB to place its inaugural transaction in Czech koruna

Moscow-based development bank International Investment Bank (IIB) has priced its denominated private placement transaction with three-year floating rate notes in koruna of CZK501mn, the bank said in ... more

Latvia to probe tram tender awarded to Russian-controlled Railvec

Latvia’s state security service, the Constitution Protection Bureau (SAB), plans to scrutinise a tender to deliver trams to the country’s second-largest city won by a Russian company with ties to ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more

Dismiss