Page 23 - bne_newspaper_August_25_2017

Weekly Lists
August 25, 2017 www.intellinews.com I Page 23
bne:Credit Russia’s fruit & veg
inflation spike over, headline rate down to 3.7%
Ukraine industrial output plunges 2.6% y/y in July after two months of growth
The spike in fruit & veg prices that soared following terrible weather in May appears over as the headline inflation rate fell to a new post-Soviet low of 3.7%.
The Central Bank of Russia (CBR) and investors will be relieved, as the headline rate is back below the 4% target that the central bank set for this year, which allows it to resume monetary easing at its next meeting in the middle of September.
Ukraine's industrial production plunged 2.6% y/y in July after two consecutive months of growth. In the January-July period, output decreased by 0.7% y/y.
Industrial production in July from June in m/m terms grew by 0.3%, while the seasonally adjusted decline was 1.3% m/m, the State Statistics Service said on August 22.
The economy was starting to recover nicely in the fourth quarter of last year, but the economic blockade of the separatist-held Donbas region, amongst other problems, has set progress back. Industrial production has been slowing in recent months after posting 3.8% y/y growth in June and 1.2% y/y in May, according to the State Statistics Service.
Hungary’s Government Debt Management Agency AKK sold HUF15bn (€49mn) in three-month T-bills at an auction on August 22, with yields falling to historic lows.
The volume was in line with the original offer. Primary dealers bid HUF26bn, HUF5bn less than at the previous sale of the maturity on August 8. The average yield fell to 0%, an all-time historic low, below the 0.05% on the secondary market benchmark. Even the maxiumum yield at the auction was 0.01%.
The state debt manager has cut back its offer from HUF20bn to HUF15bn at its weekly auction of the three-month facility since June 20. Hungary is on track to exceed its previous targets on the year's financing plan due to strong demand from retail investors.
Yields fall to record lows as Hungary sells HUF15bn in three- month T-bills