Russian inflation unexpectedly slows to 0.5% in Oct - Rosstat
MOSCOW. Nov 6 (Interfax) - Russia had 0.5% inflation in October, after it experienced 0.6% inflation in September, the Federal State Statistics Service (Rosstat) reported on Tuesday.
This inflationary slowdown came as a surprise to analysts and the Economic Development Ministry, who Interfax polled at the end of the month. They had anticipated 0.7% inflation, while the ministry's forecast had ranged between 0.6%-0.8% throughout the month.
In October of last year, inflation was also 0.5%.
Annual inflation was down in October for the first time since April - to 6.5%, compared to 6.6% in September. In August, annual inflation came to 5.9%, in July - 5.6%, in June - 4.3%, in May and April - 3.6%, in March and February - 3.7%, and in January - 4.2%.
Whereas year-on-year inflation was at a minimum in April-May, it jumped due to indexed tariffs and a low grain harvest afterwards. In September, tariffs for heat, water and water heating services for the population were raised further, averaging at 6% growth among the regions on September 1. This indexation was an addition to the 6% increase on July 1.
In October, Russia saw a substantial slowdown in service tariff growth. After a 1% rise in September, these tariffs only edged up 0.1% in October.
Foodstuff prices increased by 0.5% in October, compared to 0.1% in September. Non-food goods saw a price increase of 0.7%, the same as in September.
For January-October as a whole, inflation stood at 5.6%. In the same ten months of last year, Russia had 5.2% inflation, and for 2011 as a whole - 6.1% inflation.
The base consumer price index, which excludes changes to prices for certain goods subject to the influence of administrative and seasonal factors, stood at 100.6% in October (100.7% in September and 100.5% in October 2011). For January-October as a whole, it was 4.8% (5.6% for January-October 2011).
Fruit and vegetable prices declined 2.2% in October, compared to 5.6% in September and 10.8% in August. The most noticeable price drops were observed for cabbage (12.8%), onions (10.3%), potatoes (5.6%) and apples (2.6%). Meanwhile, banana prices jumped 12.3%, and orange prices rose 3.8%.
Certain types of products derived from grain processing experienced price increases in October. For example, wheat flour prices grew 4.8%, bread made from wheat flour - 2.1%-2.6%, and bread from rye and rye wheat, as well as vermicelli - 1.7%.
Milk and butter prices were up 1.1% in October. Sunflower oil prices increased 4.3%, and egg prices - 3.5%.
Granulated sugar prices fell 2.9% in October.
The minimum food basket averaged at 2,550.5 rubles for the month throughout Russia in October, unchanged since September. It was up 5.4% since the start of 2012.
The growth in diesel fuel and gasoline prices accelerated in October - diesel fuel prices rose 2.5% (1.9% in September), and AI-95 and higher automobile gasoline prices were up 2.6% (2.1%). AI-92 (AI-93, etc.) gasoline prices rose 2.3% (2% in September), and A-76 (AI-80) prices climbed 2.1% (1.6%).
Prices for tobacco items continued to post substantial increases in October - domestically produced cigarettes grew 1.4%-2.2% in price, and foreign brand prices edged up 0.8%.
Fares for trips in various types of long-distance railway cars experienced a seasonal decline of 7.7%-9.8%.
With the aim of reigning in inflation, the Central Bank of Russia (CBR) hiked the refinancing rate a quarter of a percentage point to 8.25% in September. The CBR board of directors left rates unchanged at its October meeting, but the regulator's 'anti-inflationary' rhetoric was taken by experts as tougher than a month earlier.
Economists maintain that inflation this year will be somewhat higher than last year at 7% (according to an Interfax consensus forecast done at the end of October) versus 6.1% in 2011. The Economic Development Ministry anticipates inflation of around 7% this year. The CBR also allows that actual 2012 inflation will slightly top its previous forecast of 6%.
