16 Jun 2022 16:56

Reshetnikov expects deflation in Russia in June

ST. PETERSBURG. June 16 (Interfax) - Current trends in price dynamics render deflation an actuality in Russia for June, Economic Development Minister Maxim Reshetnikov told reporters on the sidelines of the St. Petersburg International Economic Forum (SPIEF) 2022.

"Deflation will be quite complete in June at these trends," Reshetnikov said.

Reshetnikov said that two-thirds of the additional budget spending in early June has "settled" in deposits. "It is rather difficult to coax people to spend at these real interest rates," he said.

According to data from the Russian Federal State Statistics Service (Rosstat), prices decreased by 0.14% from the beginning of the month to June 10, and have increased by 11.64% year-to-date.

Annual inflation in Russia slowed to 16.7% as at June 10 from 17.0% as at June 3 and 17.10% as at the end of May.