OREANDA-NEWS. August 19, 2014. As compared with past July, it increased 1 p.p. In July, Consumer Price Index was floating around the mid-term inflation target of 5%. In June, the monthly inflation decreased 0.7% due to 2.1% lower prices for foods, NBM reports. At the same time, prices for nonfoods stayed unchanged while tariffs for services to the population grew 0.2%.

The annual core inflation made up 5.4% in July 2014, down 0.1 p.p. up as compared with the previous month, NBM informs. In July 2014, the monthly core inflation was equal to zero. The prices for cigarettes, catering and entertainment services, domestic goods, hygienic items and cosmetics grew the most. Prices for foodstuff went down 2.1% month-on-month. In particular, the decline made up 27.3% for potatoes, 21.5% for fresh vegetables, 2.5% for fruit and 0.1% for milk and dairy products. At the same time, the prices grew 6% for eggs, 1.2% for sugar, 0.6% for rice, 0.5% for vegetable oil, 0.4% for soft beverages and o.3% for strong ones. Excluding the seasonal factor, prices for foods decreased 0.4% month-on-month.

The dynamics is explained by the rich yield of seasonal vegetables. In July, the annual rhythm of the growth in food prices was 7.1% in July, up 0.7 p.p. month-on-month and 1.3 p.p. against July 2013. The fuel prices did not change in July, 2014, NBM say. In particular, the prices for firewood and liquid fuel were the same as in June. The price for coal grew 0.9%, but the growth was mitigated by the declines in the prices for liquefied gas and fuel by 0.8% and 0.1% respectively. The annual rhythm of the growth in prices for fuel was 3.6%, up 0.3 p.p. month-on-month and down 2.7% against last July.

Regulated prices increased 0.2% in July month-on-month, the increase formed by 0.7% higher price for medicines and the 0.5% higher healthcare costs. The increase in the tariffs on international railroad transportation and the decrease in air transportation tariffs contributed much less to the evolution of the regulated prices.

In July, the annual rhythm of the growth in regulated prices was 2.8% in July, up 0.1 p.p. month-on-month and 0.9 p.p. against July 2013. The NBM promises to further be observing the evolution of the domestic economy and the international economic environment, including the evolution of the demand, remittances and external trade so that to maintain the mid-term price stability through use of instruments of monetary policies within the Inflation Targeting Strategy.