Page 24 - RusRPTJuly18

and water supply. In electricity generation, the changes are marginal, averaging 0.04pp, meaning no substantial bias in the initial estimates. The revision follows a similar pattern in mining & quarrying, where the initial print was too high in April-July, while the rest of the time it was too low.
As far as May’s IP data is concerned, the headline edged slightly lower to +3.7% YoY, from 3.9% YoY in April. While manufacturing continued to expand at a good pace (+5.4% YoY vs. +5.3% YoY previously), the slight deceleration was due to mining & quarrying, which slid to +1.3% YoY from +2.5% in April. Electricity generation lost -0.7% YoY (vs. +0.5% YoY), on the back of the weather being 1.5oC warmer than a year ago.
4.2 Inflation 4.2.1 CPI dynamics
Russia’s inflation shrugged off spiking fuel prices in May to turn in another month of low and stable inflation . Russia's consumer price inflation came in at 0.4% month-on-month in May, flat compared to April, with year-on-year inflation remaining at 2.4%, according to the report by Rosstat statistics agency.
Inflation remained stable despite the much-feared hike in gasoline fuel costs that are up 5.6% m/m on the back of the recent rise in crude prices, prompting discussions of the need to cap fuel inflation.
"A breakdown shows that half of the monthly inflation (0.2pp), as well as almost 0.7pp of the 0.9% m/m increase in non-food prices, owed to gasoline prices, which rose 5.6% m/m in May," Sberbank CIB noted on June 6, estimating that adjusted for gasoline, inflation decelerated to 2.2% y/y in May.
Food prices – which account for 38% of the CPI basket – rose by 0.4% y/y in May , compared with 1.1% y/y in April. Non-food goods inflation picked up sharply, from 2.7% y/y to a nine-month high of 3.4% y/y. That largely reflected a jump in gasoline prices.
RUSSIA Country Report July 2018 www.intellinews.com