{"id":25729,"date":"2017-01-18T06:44:02","date_gmt":"2017-01-18T06:44:02","guid":{"rendered":"http:\/\/fdcng.com\/?p=25729"},"modified":"2017-01-18T06:44:02","modified_gmt":"2017-01-18T06:44:02","slug":"fdc-economic-bulletin-january-17-2017-inflation-dynamics-leave-market-analysts-puzzled","status":"publish","type":"post","link":"https:\/\/fdcng.com\/fdc-economic-bulletin-january-17-2017-inflation-dynamics-leave-market-analysts-puzzled\/","title":{"rendered":"FDC Economic Bulletin – January 17, 2017 “Inflation dynamics leave market analysts puzzled”"},"content":{"rendered":"
[vc_row][vc_column][vc_column_text]Headline inflation hit a new 11-year record with a rate of 18.55% YoY. This confounded many market analysts that earlier forecast a decline in the headline rate to make December the point of inflection of the indicator in 14 months.<\/p>\n
A further decomposition of the inflation dynamics suggests that a moderation of inflationary pressures is not farfetched. This is because of disappearing base year effects, a reduction in core inflation (18.1% from 18.2% in November) and a declining trend in 2016.<\/p>\n
With these observations, we expect a change in inflation dynamics in Q1\u201917 as we observe that prices of perishable and inelastic goods, such as rice and beans, are declining.<\/p>\n
In the attached bulletin, the FDC Think-Tank analyses price movements in December.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]