Russian consumer inflation slows to 15.1% y/y in July

* This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, Aug 10 (Reuters) - Annual inflation in Russia slowed further in July, driven by a month-on-month decline in consumer prices amid sluggish demand, data showed on Wednesday, giving the central bank an argument to continue cutting interest rates. Inflation has accelerated sharply after Russia began what it calls "a special military operation" in Ukraine on Feb. 24, which triggered sweeping western sanctions and disrupted logistics chains. In July, annual inflation slowed to 15.10% from 15.90% a month earlier, sliding below analysts' expectations for 15.3% in a Reuters poll, data from the statistics service Rosstat showed. The central bank targets annual inflation at 4%. Month on month, the consumer price index (CPI) declined 0.39% after a 0.35% drop in June in contrast with a 7.61% jump in March, which became the biggest month-on-month increase since January 1999. On a weekly basis, the consumer prices index nodded 0.08% lower in the week to Aug. 8, declining for the fifth week in a row. Fading inflationary pressure has allowed the central bank to cut its key rate by 150 basis points to 8% in July. It said it would study the need for more cuts as an economic contraction was on track to continue for longer than previously thought. High inflation has been the key concern among households for several years as it dents living standards, something that this year will be aggravated by recession in the economy. Rosstat gave the following details: RUSSIAN CPI July 22 June 22 July 21 Mth/mth pct change -0.39 -0.35 +0.31 - food -1.53 -1.10 -0.50 - non-food -0.44 -0.41 +0.77 - services +1.41 +0.88 +0.88 Y/Y pct change +15.10 +15.90 +6.46 Core CPI y/y pct change +18.40 +19.18 +3.83 (Reporting by Reuters)