Monthly inflation in Russia quickens to 0.6% in June, annual to 4.4%
MOSCOW. July 6 (Interfax) - Russia had 0.6% inflation for the month of June, the Federal State Statistics Service (Rosstat) said.
Inflation accelerated from 0.4% in May and 0.3% in April. It was 0.1% in March, 0.2% in February and 0.6% in January, and 2.3% in January-June.
Going by the Rosstat figures, inflation was 4.4% in annual terms in June, up from 4.1% in both May and April. Annual inflation was 4.3% in March, 4.6% in February and 5.4% in December.
The June inflation was higher than the 0.5% that analysts predicted in a consensus forecast for Interfax and than the 0.3%-0.4% that the Economic Development Ministry predicted.
But the core or underlying inflationary index, which excludes short-term irregular price changes caused by various factors of an administrative, once-off and seasonal nature, fell to 3.5% in annual terms in June from 3.8% year-on-year in May. The drop suggested the June price spike was seasonal in nature, caused by higher fruit and vegetable prices.
Foodstuffs went up 1.0% in price in June or, minus fruit and vegetables, they grew 0.1%.
Nonfood goods rose 0.1% in price. Service charges went up 0.7%, due to a 3.6% average rise in passenger transport fares.
Higher fruit and vegetable prices are still having a considerable impact on inflation, with cabbage prices up 50% in June, and apples, oranges, beetroot, potatoes and carrots rising 15.9%-22.4%, however prices fell 25.4% for cucumbers, 22.8% for tomatoes, 3.8% for garlic and 0.7% for dried fruits.
They fell 1.6% for cereals and legumes, 3.5% for eggs and 1.0% for sunflower oil.
"Food inflation remains relatively low, although since the supply of last year harvest has become exhausted annual growth in prices for fruit and vegetables is currently rising," the Central Bank said in a commentary to its June 16 decision to lower its key lending rate to 9% from 9.25%.
The Economic Development Ministry's official forecast is for inflation to slow to 3.8% in 2017 as a whole. Central Bank First Deputy Governor Ksenia Yudaeva said at the beginning of June that the 3.8% forecast is "realistic" and Economic Development Minister Maxim Oreshkin said his ministry expects inflation in the range 3.6%-3.8% by the end of the year.
Economists told Interfax in the consensus forecast, prepared in late June and early July, that inflation for the full year will be at the 3.9% level.
