Industrial PPI of 4.6% y/y and 2.8% m/m is reported for August by RosStat. While in y/y terms the producer prices’ growth moderated, m/m advance of the indicator continued for the fourth consecutive month. Previously in H1 overall producer prices grew by 3.5% y/y. To compare, in August 2012, PPI stood at 6.6% y/y and in H1/12 at 6.1% y/y.
In y/y terms the PPI moderated due to extraction costs growth halving to 9% y/y in August. Manufacturing and utilities producer price growth stable at 2% y/y and 10% y/y in August (1.9% y/y and 13% y/y in July).
CPI inflation in Russia in August remained flat at 6.5% y/y and decelerated to 0.1% in m/m terms. Inflation in y/y terms stayed unchanged after reaching 8-month low in July, above the expectations of analysts surveyed by Bloomberg (6.4% y/y) and Reuters (0.0% m/m).
Previously in May annual monthly inflation hit 21-month high at 7.4% y/y. Central Bank of Russia (CBR) expects that the price growth is going to gradually decline to the target 5%-6% range by the end of the year.
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