Rosstat: Russia Sees Another Week of Deflation

UrBC, Moscow, August 12, 2016. Russia’s weekly deflation rate was registered at 0.1% on August 2-8, 2016, just like one week earlier, Rosstat reports.

For one, the price of fruit and vegetables dropped by 3.5% last week, including a 10.7% and an 8.2% drop in the price of tomatoes and cucumbers, respectively. Potatoes, carrots, and cabbage grew 4.1% to 4.9% less expensive, respectively, while the price of fish, eggs, rice, and pasta declined by 0.1% to 0.3%.

At the same time, the price of sugar went up by 0.6%, that of toffee, buckwheat, and chicken by 0.2% to 0.4%, and that of gasoline and diesel fuel by 0.1%.

Inflation changed into deflation on July 26-August 1for the first time since September 2011, Rosstat reports. Prior to this week, Russia’s inflation rate stood at 0.1% for three weeks in a row.

All in all, prices have gone up by 3.8% since the start of the year (compared with a 9.8% increase in January-July 2015).

Russia’s Economic Development Minister Alexei Ulyukayev said in early August that deflation would probably still be there in place of inflation throughout most of the month and perhaps in the first week of September as well.


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