Experts note that consumer price growth in the country for the week from May 19 to 25 was 0.07%.
It’s worth noting that the previous seven-day period ended with deflation—minus 0.02%. Thus, we see that the Central Bank of Russia and the government’s efforts to combat inflation are gradually yielding results.
Looking at a longer time frame, it’s worth noting that prices have increased by 0.11% since the beginning of May by the 25th, and by 3.22% since the beginning of the year.
This is lower than the Central Bank of Russia’s final inflation target of 4%. However, in annual terms, inflation currently stands at 5.33%, significantly higher than the stated target.
Experts note that different categories of goods are showing different trends toward price increases or decreases.
For example, fruits and vegetables fell by an average of 0.1% in the reporting week (the previous week’s decline was 2.2%). Tomatoes were the biggest decliners, down 3.6%.
However, some items actually increased in price: onions increased by 2.1%, beets by 1.6%, cabbage and carrots by 1.3%, potatoes by 0.8%, cucumbers by 0.2%, and apples by 0.1%.
Of other categories, the most significant price increases were for granulated sugar (up 0.9%), frankfurters (up 0.4%), and fish (up 0.3%).
At the same time, chicken eggs fell by 2.2%, margarine by 0.5%, and cooked sausages, butter, and rice by 0.4%.
Potato prices are also currently falling, largely due to the expiration of last year’s harvest.
Logically, this should actually lead to price increases. However, in reality, the depletion of Russia’s own potato and vegetable reserves is stimulating increased imports from southern countries.
At the same time, early domestic produce, including potatoes, is beginning to enter the market. However, analysts note that a significant seasonal price decline shouldn’t be expected before August, as this is when large quantities of the harvest begin to arrive.
As for tomatoes and cucumbers, they became the most expensive food products in the third week of May.
This is due to the fact that greenhouses operating without supplemental lighting are now entering the market—they are numerous in southern regions, where there is ample sunlight and warmth.
The cost of production in such greenhouses is significantly lower than that using supplemental lighting, and the fresh harvest intensifies market competition. This leads to consequences that are favorable to consumers: at the very time when vegetables should be more expensive, not only do they not rise in price, but they actually become cheaper.
