CPI inflation accelerated to 3.5% y/y in April from 3.1% y/y in March, according to data published by the stat office on Tuesday. This was the fastest price growth rate since Apr 2012 as the outcome fell short of expectations as the stat office had expected prices to rise by 4.2% y/y. The outcome reflects higher transport prices, which grew by 7.8% y/y in April, after an increase by 6.6% y/y in the previous month, as fuel prices rose by 13.9% y/y. Accelerating prices of alcoholic and tobacco products, miscellaneous goods, and recreation and cultural services had an upward impact on CPI dynamics, too, as well as did stabilizing clothing and footwear prices. On the other hand, food price inflation kept decelerating and reached 2.0% y/y in April, a five-month low. Housing and utility prices remained more or less stable, down by 0.5% y/y, reflecting recent electricity cuts from Jan 2017. CPI inflation is likely to stabilize in May before starting to decelerate more tangibly from June onwards considering the base effect from last year and the recent softening of oil prices.