The inflation report suggests that the CPI added 0.16% over 1-10 June (vs. 0.22% in 1-9 June 2012) with daily growth continuing to slow (which implies YoY disinflation to 7.3%). Importantly, the similar average daily price growth in June this and last year de facto imply a YoY deceleration, as in June 2012 actual growth reached 0.9% MoM (despite the weekly CPI reports showing 0.5% MoM growth).
We note that the favourable base effect in fruit and vegetables continued to intensify: this was the third week with lower fruit and vegetables prices growth compared with the respective period in 2012 (1.3% WoW vs. 4.2% WoW). In our view, vegetables prices are set to increase more and more modestly in the weeks to come. That, coupled with the abnormal intensification in vegetable prices growth last year, will likely lead to strong headline disinflation. Hence, we expect the headline CPI to come in at 6.8-6.9% YoY in June 2013.