Inflation slows to 2.9% y-o-y in February

2010-03-16

The consumer price index (CPI) amounted to 2.9% y-o-y in February, which represents a marked deceleration in price growth compared with the previous month, the Central Statistical Office (GUS) reported. The result was slightly below market expectations, which averaged 3% y-o-y.
The highest increase in the 12 months up to February was noted in transport (a category that includes car fuel), where prices rose by 8.2% y-o-y, followed by alcoholic beverages and tobacco products (up 7.4% y-o-y), hotels and restaurants (up 3.9% y-o-y), and housing and energy (up 3.4% y-o-y). Prices of food and non-alcoholic beverages rose 2.8% y-o-y. By contrast, clothing and footwear prices fell by 4.9% y-o-y.
On a month-on-month basis, the CPI was 0.2%.
In January-February consumer prices rose by 3.2% y-o-y. We forecast price growth to slow further in the coming months, and the CPI for the year to come in at 2.3% y-o-y.

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