10 Aug 2011 17:34

Inflation in Russia back at zero for week Aug 2-8 - Rosstat

MOSCOW. Aug 10 (Interfax) - Consumer prices were flat for the week August 2-8, the Federal State Statistics Service (Rosstat) reported Wednesday.

There had been 0.1% deflation the previous week for the first time in two years, and prior to that there were three straight weeks of zero inflation.

Year-to-date inflation was 5% as of August 8, for the first time equaling that of a year earlier (also 5% on August 8, 2010), when the inflation rate in the first half was lower than in 2011, but started to rise in July-August when instead of the typical seasonal slowdown in price growth inflation quickened due to drought and poor harvests.

The level of annual inflation was by August 8 down to 8.8% from 9% at the start of the month.

The zero inflation is attributable to the seasonal decrease in food prices, which for the week average 4.4% down (3.5% down from July 26 to August 1). Prices for potatoes dropped 10.1%, for cabbage 8.5%, and for carrots 5.2%.

Buckwheat groat prices were down 0.9%, sunflower oil, millet, flour, and cheese prices 0.1%-0.2%.

But egg prices ticked up 0.4% last week, lamb prices 0.9%, beef and margarine prices 0.3%. The cost of automobile gasoline rose 0.8% and that of diesel fuel 0.7%.

The Economic Development Ministry expects 2011 inflation of 6.5%-7.5%, while the Central Bank is looking to keep it within 7%. An Interfax survey of analysts done at end-July produced a consensus forecast of 8.1% inflation for this year.