Russia’s consumer price inflation during the week of June 17–23 was 0.04% week on week, flat as compared to the previous week, according to the latest report from RosStat statistics agency. (chart)

The Ministry of Economic Development estimated that this implies a deceleration of inflation to 9.5% y/y (from 9.9% in May). 

While May’s inflation reading was still higher than expected, the latest weekly inflation data showed that price growth continued to slowly moderate.

As followed closely by bne IntelliNews, the board of the Central Bank of Russia (CBR) resolved to cut the key interest policy rate from 21% by 100 basis points to 20% at the policy meeting of June 6, the CBR said in a press release. (chart)

Renaissance Capital analysts commented that weekly inflation remains subdued ahead of the July hike in utility tariffs. 

“This restrained price pressure in May-June, combined with early signs of declining household inflation expectations, in our view allows the Central Bank of Russia to continue the key rate cut cycle on 25 July, reducing it by 100 basis points to 19%,” the analysts wrote.