Inflation slightly acccelerated in September

131011_Infl_EN This is the strongest m-o-m dynamic since the beginning of 2013 when the government introduced its policy of forced cuts in utility prices. Monthly price dynamics in September were relatively high in consumer durable goods (0.3%) that may signal a modest strengthening of consumer demand on the back of rising real wages. Significantly, m-o-m core inflation was a seasonally adjusted 0.8%, the highest since January 2012. In consequence, y-o-y core inflation rose to 3.5%, approximating the 3.7% level observed in January 2013 by the statistical office. In balance, inflationary dynamics appear complex. On one hand, drop of food prices and regulated prices keep headline inflation low. On the other one, consumer demand maybe slowly and gradually rising. Core inflation in y-o-y terms with the exception of July has never slowed below 3% and its most recent hike means significant acceleration in comparison to the previous months.