Consumer prices increased 1.04% on a month-on-month basis in September, up from August’s 0.99% rise. The slight acceleration was mainly driven by a faster growth of food prices.
Inflation rose from its over three-year low of 11.0% in August to 11.2% in September. Thus, it climbed further above the Central Bank’s target range of 6.0%–9.0%. Meanwhile, annual average inflation remained stable at 11.3% for the sixth consecutive month in September.
Moreover, core consumer prices, which exclude volatile agricultural produce, rose 0.89% month-on-month in September, above August’s 0.67% increase. Core inflation climbed to 8.9% in September from 8.7% in August.
FocusEconomics Consensus Forecast panelists expect inflation to average 11.2% in 2020, which is unchanged from last month’s forecast. In 2021, inflation is seen averaging 11.0%.
Author: Hanna Andersson, Economist