Inflation in October accelerated expectedly

Inflation in October accelerated to 0.6% mom from 0.3% mom in the previous month. On an annualized basis, the price increase rose to 7.1% from the September level of 7%. The inflation rate in October was in line with the numbers of a year ago and indicated a continuation of the trend of deceleration in price growth, which had emerged from the second half of this year. The problems in the economy, accompanied by an increased level of unemployment and a decline in retail sales, as well as measures to curb price increases by government bodies, seriously limit the potential for accelerating inflation this year. We keep our inflation forecast for the end of this year at 7.3% yoy.