“Weekly inflation in Russia again slowed to zero

The annual inflation rate approached 2.6 percent

Photo:panthermedia/vostock-photo

– Consumer prices in Russia for the week from 24 to 30 October has not changed, said Wednesday Rosstat.

For the previous week from 17 to 23 October, weekly inflation for the first time since mid-July rose 0.1%, before six weeks, inflation was zero, and before that two weeks in a row recorded a deflation of 0.1% and 0.2%, respectively.

The accumulated total from the beginning of the month prices by 30 October rose 0.2% (subject to rounding), since the beginning of the year increased by 1.9%.

As reported, in September, deflation in Russia amounted to 0.1% after record for all time of observation of deflation of 0.5% in August. Deflation for two consecutive months was only the second time (previously in 1997).

Average daily price growth for the 30 days of October amounted to 0,008%. Over the same period of October last year, the average increase was 0.017 per cent. Based on these data, annual inflation at the end of September (2,96%), it follows that by 30 October, inflation in annual terms was between 2.6% and 2.7 per cent, somewhat closer to 2.6 percent.

At the same time in October 2016, monthly inflation was below the weekly change of – 0.4% (weekly output by 0.5%), so rounding to 30 Oct fairly conventional, and the final figure for the month (to be published next week) might be a little higher.

Compared to the previous week slowed the growth of prices for fruits and vegetables to 2.1% from 3.4% a week earlier. Including tomatoes and cucumbers rose by 15.2% and 12.7%, respectively, potatoes – by 0.6%. While onions, cabbage, carrots and apples are cheaper at 0.8-1.5%.

For the last week eggs have risen by 0.7%, meat – by 0.2%.

At the same time prices for sugar decreased by 1.6%, flour, sunflower oil, buckwheat, rice, millet, pasta, vermicelli, tea, chicken, pork, lamb and sausage by 0.1% to 0.9%.

The prices for automobile gasoline for a week has not changed, on diesel fuel – rose 0.3%.

The Ministry expects inflation in October at 0.2-0.3 percent per annum and 2.7% to 2.8%. By the end of 2017, the Ministry called the most probable interval for inflation in the 2.7-3.2 percent. The head of the Ministry Maxim Oreshkin in mid-October, told reporters that the deviation of annual inflation from the target is already “serious” and “bad.” According to him, such a significant slowdown of the annual inflation caused by monetary factors.

The Board of Directors of the CBR meeting on Friday decided to reduce the key rate from 30 October to 25 basis points (b.n.) to 8.25% per annum, while the Bank of Russia reiterated that inflation remains close to 4%, and the deviation down from the forecast is mainly due to temporary factors.

“Inflation expectations remain elevated. Mitigation remains fragile and uneven. Medium-term risks of exceeding the inflation targets outweigh the risks of sustainable inflation deviation down. With this in mind, the Bank of Russia will continue to move from moderately tight to a neutral monetary policy gradually,” – stated in the message of the Central Bank.

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