Russia inflation rises 7.8 percent in June; calls for interest rate hike heightens

Nathan Andrada – Fourth Estate Cooperative Contributor

Moscow, Russian Federation (4E) – Russia’s consumer inflation rose further in June to its highest mark since August 2011, according to official data released Friday in Moscow, reinforcing calls for the central bank to tighten its monetary policy during its meeting later in July.

Consumer prices climbed 7.8 percent last month year-on-year, compared with May’s 7.6 percent rise, according to an emailed statement from the Federal Statistics Service. The figure topped the median estimate of 20 economists polled by Bloomberg News of 7.7 percent.

The central bank kept interest rates unchanged during its policy meeting in June, but the bank said that it may raise rates if inflation continues to grow at its current pace. The International Monetary Fund has also recommended an increase in rates if inflation does not slow down.

Central bank officials are scheduled to meet on rates on July 25.

Consumer prices accelerated 0.6 percent in June month-on-month. In the January to June period in 2014, prices are up 4.8 percent compared to 3.5 percent in the year-earlier period.

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