13 May 2010 16:14

Russia had 0.1% inflation in May 5-11, 3.6% in year so far - Rosstat

MOSCOW. May 13 (Interfax) - Russia had 0.1% inflation in the week of May 5-11, Rosstat reported on Thursday.

It is the eighth week in a row that consumer prices have risen 0.1%, and prices rose 0.2% a week in the three weeks prior to that. Inflation in the year so far totals 3.6%. Inflation in May has been 0.2%.

Last year prices rose 0.3% in the first two weeks of May and 6.5% year-to-date. Prices increased 0.6% in May.

In annual terms, inflation was 5.9% on May 11 compared with 6.5% at the end of March and 6.0% at the end of April.

Price growth on fruit and vegetables accelerated to 1.8% compared with 1.3% and 0.5% in the two preceding weeks. Cabbage and carrot prices were up 11.8% and 3.3% respectively, onion - up 1.2% and potatoes - up 1.1%.

Dry milk for baby food, buckwheat groats, pork (excluding boneless meat) and certain types of confectionary were up 0.2%-0.4%.

However, prices on eggs and granulated sugar declined 3.8% and 1.0% respectively, and prices on chicken, frozen fish, flour, vermicelli, millet and rice were down 0.2%-0.5%.

Gasoline and diesel fuel prices were up 0.1% during the week.

Analysts lowered their consensus on inflation in 2010 to 7.7% from 7.9%. They say inflation could continue to slow in the next few months, but is expected to accelerate in H2 2010, because it was so low in the corresponding period of 2009, and because incomes and the monetary base are expected to rise. The Russian Economic Development Ministry has also lowered its FY2010 inflation forecast, to 6.0%-7.0% from 6.5%-7.5%. Inflation in 2009 was a record low 8.8%.