Russia reaches zero inflation for first time in 28 years

 Russia reaches zero inflation for first time in 28 years

Russia’s inflation slowed down to 4.7% in June in annual terms from 5.1% in May, the Russian central bank said in a statement, citing the Federal State Statistics Service.

Russia’s inflation may speed up to 0.2% in July from zero in June (for the first time since 1991), and slow down to 4.5–4.6% in annual terms in July, the Economic Development Ministry said in a research note on Monday.

The Federal State Statistics Service said that inflation slowed down to 4.7% in June in annual terms from 5.1% in May, and in monthly terms it fell to zero.

"The estimate of the Economic Development Ministry shows that inflation amounted to 0.2% month-on-month at the end of July, and it should slow down to 4.5–4.6% in annual terms," the Prime news agency cited the research note as saying.

The ministry added that such a rapid slowdown of inflation shows weak dynamics of combined demand in the economy, and monetary inflation also shows that as the factor’s dynamics fell to their lowest point since July 2018.

The ministry’s official forecast for inflation in 2019 stands at 4.3%.

The consumer confidence index grew 1 percentage point on the quarter to minus 15% in April–June.

The share of people who think that the recent economic changes are positive rose to 12% in April–June from 11% in January–March, while the share of negative estimates went down to 42% from 45%, and the share of neutral estimates rose to 46% from 43%.

The number of people who expect economic improvements in the next 12 months fell to 15% from 16%, while the share of people that see negative dynamics in the Russian economy decreased to 29% from 33%.

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