Actual (Sep): -0.3% mom; 2.0% yoy
Consensus: -0.3% mom; 1.9% yoy
Previous (Aug): -0.3% mom; 1.9% yoy
Consumer prices did not bring any surprise and decreased due to seasonal decline of prices of services provided by travel agencies. Also cheaper gasoline prices contributed to CPI decline. On the other hand, beginning of the school year led to higher prices of goods and services related with education. Clothing and footwear prices moved up at the beginning of autumn season.
Headline inflation inched higher and reached the central bank’s inflation target. Nevertheless core inflation (ex food, energy and impact of taxes and administrative measures) remains negative. Thus, the central bank can keep its current stance. Interest rates are likely to stay at the current level until the 2Q or 3Q 2011.