CPI inflation eased down to 3.4% y/y in November, down from 4.4% y/y in October, according to figures of the statistical office, published on Friday. The most notable contribution for the deceleration was made by the transport sector, where price growth registered a significant slowdown to 2.5% y/y in November, from 10.1% in October, driven by international oil prices. In addition, food and non-alcoholic beverages also contributed as their price growth slowed down to 1.7% y/y. On the other hand, the most notable upward pressure on the headline index was exerted by the housing sector, where price growth picked up to 8.6% y/y, underpinned by higher electricity and heating prices.
Looking forward, CPI inflation might ease down somewhat further considering international oil prices, while in addition PPI inflation has also been slowing down slightly. To remind, the government expects CPI inflation at 3.3% on average in 2018.