Unexpectedly for most observers, prices in Russia fell by 0.5% in August, the biggest monthly deflation on record. The August deflation brought the year-on-year inflation down to 3.3%, which also means the record lowest inflation in post-Soviet Russia.
Embarrassing enough, the hefty deflation did not come as a surprise only for the analysts, but also for the Central Bank, who just a few weeks ago predicted that prices would stay flat in August (making wrong crop forecasts based on a cold beginning of summer, while ignoring the record rain that again will deliver a near record harvest). This again should not …read more
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