Russian consumption still depressed, but a moderate recovery is looming

Russia's consumer demand recovered at a very slow speed which is being reflected in the very weak recovery in retail sales. On a seasonally adjusted basis, retail sales in monthly terms have seen some gains, but are still in negative territory. 

Regardless of the tariff indexation in mid-July, the decline in the pace of inflation took over the baton and will help retail sales to recover going forward. 

"However, base effects will keep the annual figure on a downward trend (-10.0% yoy) in July", says Societe Generale.