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Cheaper fruit and veg leads to lower inflation in Russia
In July, inflation in Russia fell below the Central Bank's target and amounted to 3.9 percent. This is evidenced by the data published on the website of the Federal State Statistics Service.
Such a sharp decline in inflation was not expected by any analysts, as noted by the "Parliamentary Newspaper." According to the forecasts of 18 economists previously interviewed by Bloomberg, inflation had been expected to decrease from 4.4 percent in June to 4.3 percent in July.
The reduction of fruit and vegetable prices has apparently had a significant impact on the dynamics of food prices.
"Thus, white cabbage has become 34.5 percent cheaper, potato prices have fallen by 21.2 percent, and beets, tomatoes, cucumbers, bananas and lemons have recorded price drops of between 8.3 and 15.2 percent. At the same time, the prices for oranges and apples increased by 8 and 6.4 percent, respectively," reported Rosstat.
Publication date: 8/9/2017
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