Actual (July): -0.2% m/m; 0.2% y/y
Consensus: -0.1% m/m; 0.3% y/y
Previous (July): -0.4% m/m; 0.3% y/y
Consumer prices fell more than expected once again. Food prices fell for the seventh consecutive months and participated significantly on the disinflation that brought annual inflation close to zero. It can not be ruled out that inflation can switch to deflation for a short period. However, no ones care about deflation in a harmful meaning.
Low inflation ensures the central bank to keep interest rates low in near future. “Exit” from the bottom of the easing cycle can be expected next year.