6 Oct 2022 14:42

Inflation in Russia totaled 0.07% from Sept 27 to Oct 3, annual inflation slowed to 13.5%

MOSCOW. Oct 6 (Interfax) - Inflation in Russia totaled 0.07% between September 27 and October 3 following inflation of 0.08% in September 20-26 and deflation of 0.03% in September 13-19, the Russian Federal State Statistics Service (Rosstat) said on Wednesday.

Consumer prices in Russia rose 0.03% between October 1 and October 3 and 10.4% since the beginning of the year.

Rosstat data show that annual inflation in Russia slowed to approximately 13.5% as of October 3 from 13.7% on September 26, 13.92% on September 19, 14.05% on September 12, 14.3% at the end of August, and 15.1% at the end of July.

Prices rose substantially on eggs at 1.5%, on sausages at 0.4%, and on beef, pork, and pasta at 0.3% between September 27 and October 3.

Buckwheat prices went down 2.1%, sugar prices 1.4%, millet prices 0.6%, and sour cream prices 0.3%.

Fruit and vegetable prices increased 1.5% over the week after growing 0.5% the week before, with prices going up 5.7% on tomatoes, 3.9% on cucumbers, 3.2% on bananas, 1.9% on carrots, 1.6% on potatoes, 1.3% on cabbage, and 1% on beets. Prices fell 1.9% for apples and 1.6% for onions.

Prices rose on various medications, including 1.4% on Ergoferon and Levomecol, 0.9% on metamizole and Rengalin, and 0.6% on multivitamins.

Among non-food goods, prices went up on matches 0.6%, on baby diapers and children's diapers 0.4%, and on toilet paper and soap 0.3%.

Prices fell on electric vacuums 1.6% and on smartphones and chipboard 0.7%.

The price of gasoline remained practically unchanged, while the price of diesel fuel rose 0.1%.

Economy air fares fell in price 0.6%, having fallen 0.8% the week before.

The Economic Development Ministry also estimated in its report on the current price situation that annual inflation in Russia was at 13.49% as of October 3.

"In the segment of food products, prices rose 0.15% amid a seasonal increase in prices for fruit and vegetables," the ministry said. Price growth for nonfood goods slowed to 0.02%, while prices for tourism and regulated services decreased by another 0.10% as prices fell for domestic flights and health resort services, the report said.

The Bank of Russia's board of directors lowered the key rate from 8% to 7.5% as expected at a meeting on September 16, without signaling its future actions, as is tradition.

In the signal paragraph of their statement, the board of directors only left the phrase: "The Bank of Russia will make further decisions on the key rate taking into account the actual and expected trends in inflation relative to targets and the process of structurally reorganizing the economy and assessing risk in terms of internal and external conditions and reactions on financial markets."

Central Bank Governor Elvira Nabiullina said at a press conference following the meeting that the cycle of lowering the key rate was likely coming to an end. "But truly, as we're close to the end of the cycle of reduction, we concede that the next step other than preserving the rate could be raising it. But at the same time, we don't rule out a reduction. We are indeed at that stage now where everything depends on external and internal factors and on how proinflationary and disinflationary risks materialize," Nabiullina said.

The Bank of Russia has lowered its inflation forecast for 2022 to 11%-13% from 12%-15%, but left its forecasts for 2023 and 2024 the same at 5%-7% and 4%.

The Economic Development Ministry's new forecast for inflation in 2022 projects a rate of 12.4% compared to 13.4% in mid-August. The ministry's forecast takes into account indexation of utility charges at 9% from December 31. Its inflation forecast for 2023 is 5.5%.

The consensus forecast given by economists surveyed by Interfax at the beginning of September put inflation at 12.7% in 2022, down from the 13.6% predicted at the beginning of July, and 6.1% in 2023.