Russia's consumer price likely increased in July

The Russian statistics office will publish July consumer price data today. The inflation rate of the economy is expected to have risen yoy once again. In June it had already reached 15.3%, whereas the Russian central bank now expects a rise of 15.8% as it explained in its statement following the rate decision on Friday. 

"That would correspond to a rise of 0.9% mom. That takes us to an issue that is of great significance for the ruble at present, i.e. the view regarding the future inflation rate. The latter does not look quite as bleak as the 15.8% might suggest", according to Societe Generale.

The central bank only expects a mom rise of 0.9% because prices in the utility sector rose significantly this year. 

"The next few months' CPI data is of crucial importance for the ruble. Anything above 0.9% (or 15.8%) might soon lead to additional ruble weakness", argues SocGen.