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.
Russian banks have been actively blocking accounts of small and medium-size enterprises (SMEs) lately as a reaction to the tough banking sector environment, Vedomosti reported on October ... more
Russian online giant Yandex has launched a voice assistant, "Alisa", available on Android and iOS and, as a beta-version, on Windows, the company said on October 9. Based on neural networks ... more
Russia's largest oil producer state-controlled Rosneft has acquired 30% in the largest natural gas field in the Mediterranean from Italian Eni, the company announced on October 9. Rosneft that ... more