CPI growth slows to 0.8% mom, PPI up 4.2% mom in June

Consumer inflation was 0.8% mom in June, down from 1.3% mom in May, the State Statistics Committee announced today. In yoy terms, CPI decreased for the first time this year, totaling 29.3% yoy in June, vs. 31.1% yoy in May. YTD growth in June was 15.5%. The main contributors to June’s CPI growth were food (0.6% mom) and utilities (2.0% mom). The producer price index surged 4.2% mom or 43.7% yoy in June. Andrii Parkhomenko: Food prices grew at the slowest mom rate since March 2007, finally signaling the results of the good harvest and abundant supply of food products. We believe that food prices will induce a further slowdown in CPI growth and pull it down to 21.0% yoy by the end of 2008 (for more details see our note later today).