Ural Federal District: Inflation Down 3.8% in August

30 September 2019 (09:16)

UrBC, Yekaterinburg, September 30, 2019. Ural Federal District’s annual inflation dropped by 0.3% in August 2019 against July 2019 and came to 3.8% because the local sowing and harvesting campaigns had been shifted to earlier periods than usual, the Russian Central Bank’s Ural division’s press service reports.

The annual food inflation dropped by 0.8% in August against July, down to 4.3%, because the new-season vegetables (including potatoes and tomatoes) arrived on the market earlier than usual and because the harvesting campaigns in the territories from which the food items get supplied to Ural Federal District had been shifted to earlier periods than usual.

As for the non-food sector, the annual inflation rose by 0.1% in August 2019; like in the rest of Russia, this had to do with the oil market’s price dynamics. After the agreement the oil companies signed with the Russian Government regarding freezing gasoline and diesel fuel prices came to an end in July, prices have been growing up gradually for the second month in a row now.

The annual inflation in the tertiary sector dropped by 0.2%, down to 4.3%. The fluctuations mostly had to do with the changing plane ticket prices, which, in its turn, had been brought about by the pricing adjustments made by certain airlines in response to the customers’ demand for air travel outside of the Urals. A special jet fuel pricing policy came into effect on August 1 in order to make up, at least partially, for the airlines’ losses. As a result, the airplane ticket prices rose considerably less in August 2019 than could be expected.

Ural Federal District’s inflation remained below the country’s average in August due to the fact that housing bills grew less in certain parts of the district than in Russia on the whole. However, Sverdlovsk Region remains the part of the district with the highest inflation rate (4.9% a year), even though its food inflation is well below the country’s average due to fierce supermarket competition.

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