Deflation for Russia in August

Russia’s Federal Statistics Service yesterday posted the first monthly deflation since 2005, driven by cheaper seasonal foods, making it less likely the central bank will raise key rates this month. Russia’s consumer price index fell 0.2 per cent month-on-month in August after staying flat in the previous period. This brings price growth in the first eight months of the year to 4.7 per cent compared with 5.4 per cent in the same period of 2010.