Annual headline CPI climbed to 7.6% in February from 7.4% in January. The pick up in CPI primarily came on the back of food as food prices accelerated to 9.7% in February from 9.5% a month before. Within the food category, fruits and vegetables were the key contributors to higher prices.
Annual headline CPI slowed to 7.4% in January from 8.0% in December. Disinflation was visible across the majority of consumer basket categories with the steepest deceleration seen for communication services (7.1% YoY vs. 12.0% in December) and health services (4.7% vs. 6.0%).
The economy is set to slow further as headwinds remain intense. The energy crisis caused by russia’s terror attacks on civil infrastructure is interrupting production cycles in many sectors and damaging consumer sentiment. If safety risks don’t subside dramatically in 2026 – which is our conservative baseline assumption – the economy will struggle to grow. Nonetheless, the continued inflows of foreign financial aid imply the economy will remain on a footing that is sufficiently strong and risks ...
The monthly current account (C/A) deficit stood at US$3.2bn on a record foreign trade-in-goods gap of US$5.0bn in September. Import of goods hit a record high at US$8.0bn in September (+34% YoY) on surging imports of machinery and equipment. Meanwhile, export was almost unchanged vs last September.
The central bank maintained the key rate at 15.5%, indicating that monetary easing is unlikely before 2026, as inflation risks remain high. The regulator left the rate unchanged and it now expects two 50bp cuts, previously projected for this year, to be postponed.
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