Produce prices push up Russian inflation

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Mike Knowles



Produce prices push up Russian inflation

Spike in prices caused by recent poor weather, but country's Central Bank suggests that rise is only temporary

Produce prices push up Russian inflation

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Fresh fruit and vegetable prices in Russia reportedly rose sharply in June as a result of poor weather in spring and summer reducing the amount of produce available to harvest.
Citing the Italian institute Ice, Italiafruit reported that prices for fresh fruit and vegetables in Russia rose by 8.3 per cent compared with the previous month, while prices in general were down 27.6 per cent.
Potato prices, for example, were apparently up 91.9 per cent in June compared with the figures for May.
The sharp increase in produce prices contributed to a 4.4 per cent increase in consumer prices during the month of June.
According to the latest issue of the bank’s Consumer Price Movements report, however, the increase will be temporary.
Indeed, the Russian authorities sounded a note of cautious optimism: “Inflation is close to the target set, expectations remain for a decline [in inflation] and economic activity is recovering,” said a spokesperson for the country’s Central Bank. “The risks of inflation have fallen in the short term.”
The bank spokesperson added: “The current rate of inflation is consistent with the Bank of Russia’s forecast made one year ago. Inflation was at the time projected to drop to under 5 per cent between May and July 2017 and reach the target reading of 4 per cent in late 2017."
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