Inflation and Monetary Policy

In September the growth rate of food prices, higher cost of fuel, as well as a new stage of regulated tariffs indexing have provoked acceleration of consumer price inflation: as per the month results, CPI amounted to 0.6% (vs.0% in September 2011). Within three weeks of October, there was no reduction in the growth rate of consumer prices, and on October 22 it was recorded at the level of 0.3% (against 0.2% in the same period of 2011). As a result, the cumulative inflation since the beginning of the year made 5.7% (vs. 4.9% in the same period of the last year). According to tentative estimates of the Central Bank, the net capital outflow from the country in Q3 reached $13.6bn, exceeding the outflow in Q2 of this year. Thus, over the first nine months of 2012 capital outflow amounted to $57.9bn (vs. $45.5bn in the relevant period of 2011).