26 Aug 2009 13:06

Russian inflation in Jan-Jul exceeds EU consumer price growth by 20 times - Rosstat

MOSCOW. Aug 26 (Interfax) - Inflation in Russia for January-July 2009 came to 8.1%, which is 20 times higher that the increase in consumer prices for the European Union (0.4%), the Federal State Statistics Service (Rosstat) said in a statement.

Inflation in Russia for July came to 0.6% (against June) while deflation totaling 0.5% was posted in the EU.

The increase in Russian food prices for the period came to 7.5% while the EU posted a price decrease coming to 0.6%.

In July, food products went up in price by 0.6%. In the EU, prices for equivalent products went down by 0.8%.

Unlike the EU, Russia is showing a trend towards substantial growth in prices for horticultural products. For example, vegetables went up in price by 4.8% in July, as did fruit, up 0.9% (in EU countries prices for these items decreased by 4.3% and 3.9%, respectively). In addition, prices for sugar, jam, honey, chocolate and candy, as well as fish and seafood, increased in price by 0.7% in Russia. In the EU prices for sugar, jam, honey, chocolate and candy remained the same while the cost of fish and seafood went up by only 0.2%.

Prices for meat and meat products went up by 0.2% in July in both Russia and the EU. During the same period, price drops were posted for butters and animal fats coming to 1.1%, as well as dairy, cheese and egg products, down 0.4% (in EU countries - 0.5% and 0.2%, respectively).

Price trends for the majority of foodstuff groups in Russia and the EU has differed greatly since the start of the year.

Since the start of the year, prices for vegetables in Russia have increased by 37.6% (while decreasing by 3.9% on average in the EU). Russian prices for fish, seafood, jam, honey, chocolate and candy, as well as fruit increased by 13.2%-15.3% since the year's start. In contrast, EU prices for fish and seafood went down by 0.6% while the cost of sugar, jam, honey, chocolate and candy went up by 1.4%. Fruit in the EU increased in price by 1.2%.

Meat and meat products went up in price since the year's start by 5.7% (in the EU up by 0.8%), baked goods and grains - 3.6% (0.3%).

As posted in the EU, Russian prices for butters and animal fats decreased (7.7% in Russia and 5% in the EU). Prices for dairy products, cheese and eggs went down 4.1% and 2.2%, respectively.