READ MOREAccording to Rosstat, higher prices for food as well as clothing and footwear drove the increase.
Inflation inched up to 3.5% in October from September’s 3.4%. October’s reading undershot market expectations of a rise to 3.6% and inflation remained below the Central Bank’s target rate of 4.0%. Food inflation was softer than expected, while gasoline prices continued to post sharp gains. Annual average inflation, however, was unchanged at September’s 2.6%.
Taking stock after the data release, Dmitry Dolgin, Chief Economist at ING stated:
“Despite the lower than expected inflation number, the near-term inflationary trend, although upward-looking, is likely to fit into the central bank guidelines. Assuming no external shocks, we reiterate our call for a flat key rate of 7.5% in the medium term”
FocusEconomics panelists see inflation ending 2019 at 4.2%, which is unchanged from last month’s forecast. For 2020, participants expect inflation to end the year at 3.8%. ■