Annual inflation in Russia continues to slow down

Inflation in RUSSIA from June 11 to 17 slowed to 16.42% in annual terms against 16.69% a week earlier. This is stated in the review of the Ministry of Economic Development "On the current price situation." According to the ministry, the main contribution to the decline in prices is still made by the reduction in food prices (-0.25% per week) due to the ongoing deflation of fruits and vegetables. At the same time, prices for other foodstuffs continued to rise moderately at the level of 0.07%.

“In the week from June 11 to June 17, 2022, deflation in the consumer market continued (-0.12%). In annual terms, the rate of price growth decreased to 16.42%, ”the agency’s review says. According to Rosstat, deflation at the level of 0.12% was recorded in Russia for the week from 11 to 17 June. A week earlier, Russia experienced 0.14% deflation. 

For the period from June 11 to June 17, 2022, according to Rosstat, prices for granulated SUGAR decreased by 2%, chicken eggs fell by 0.6%, sterilized MILK  - by 0.4%, buckwheat - by 0.3%. Fruit and vegetable prices fell on average by 2.5% (a week earlier - by 3.1%), including cabbage - by 9.7%, tomatoes - by 6.5%, beets - by 3.8%, bananas - by 3.7%, onions - by 2.1%, carrots - by 2%, potatoes - by 0.2%, cucumbers - by 0.1%. At the same time, APPLE prices rose by 0.3%. Chocolates also went up in price - by 0.7%, rice and vermicelli - by 0.4%, margarine and black tea - by 0.3%.

Georgy Ostapkovich, DIRECTOR of the HSE Center for Market Research, said earlier that inflation in May-July always not only slows down, but turns into deflation. The reason is the sale of the domestic harvest of fruits and vegetables. These are normal seasonal fluctuations, he noted. According to the expert, by the end of the year, annual inflation may reach 16-20%. “For the population, the main thing is food inflation, which is always 2-3 p.p. higher than the general consumer price index,” Ostapkovich specified.

Organic rarities: will organic fish, vegetables, fruits and berries appear in Russia

The HEAD of the Ministry of Economic Development, Maxim Reshetnikov, said earlier that inflation in Russia by the end of the year will be lower than the projected 17.5%, but will remain in double digits. At the end of May, the head of the Bank of Russia, Elvira Nabiullina, on the sidelines of a meeting of the Association of Banks of Russia, said that the forecast for inflation in Russia by the end of 2022 could be reduced from the current 18-23%, it is planned to be revised in June. She stressed that inflation is below the baseline forecast, which the Central Bank made in April.