Deflation reaches Russia

Deflation reaches Russia

Russia's consumer prices fell by 0.1% from August 6 to 12, according to the Rosstat data.

A week earlier, inflation reached 0, and since the beginning of this year it gained 2.6%. On August 12, annual inflation reached about 4.5%

Over the past week, prices for chicken eggs rose by 1.3%, millet - by 0.8%, lamb, chicken meat and frozen fish - by 0.4%. Beef, butter and sunflower oil went up by 0.3%, smoked sausages, cheeses, rice and caramel - by 0.2%.

In addition, during this period, prices of granulated sugar decreased by 1%, vodka and chocolates - by 0.2%.

Automobile and diesel fuel prices have not changed.

It's the second time deflation in the Russian Federation is observed this year. Previously it was observed last month. According to Rosstat, consumer prices fell by 0.1% over the week of July 23-29.

In an interview with Vestnik Kavkaza, head of the State Duma Сommittee on Аinancial markets, Anatoly Aksakov, explained that frequent periods of deflation in Russia indicate that the Central Bank of the country is pursuing pretty strict financial policy.

According to him, seasonal factor also affects deflation: supply of products that are replaced by others, including fruits and vegetables, grows during this period, so prices for every products decrease.