Tomatoes on the eve of the Turkish embargo for the week rose by 6.6%

Tomatoes on the eve of the Turkish embargo for the week rose by 6.6%

Moscow. December 9. Inflation in Russia for the week from 1 to 7 December jumped to 0.2%, said Wednesday Rosstat. The tomatoes on the eve of the Turkish embargo immediately rose by 6.6%, cucumbers – by 4.4%. Just a week ago and the tomatoes and the cucumbers went down by 2.1% and 0.8% respectively.

Average weekly increase in fruit and vegetable prices amounted to 1.6% (last week lost 0.3%).

Over the past week the prices for eggs increased by 1.7%, milk, sour cream, cottage cheese, bread, margarine, tea, caramel and chocolates – on 0,3-0,5%. At the same time sugar and rice fell by 0.4%, pork and buckwheat groats – by 0.3%.

Gasoline prices decreased by 0,1%, on diesel fuel – rose 0.3%.

For three weeks, the inflation equaled to 0.1%, while earlier for five consecutive weeks prices had gained 0.2%.

With the beginning of the year the price growth amounted to 7 December to 12.3%.

The average increase in prices since the beginning of December was of 0.027%, which almost coincides with the level of November 2015 (0,025%), but significantly below the December 2014 year (0.05% per 8 days and 0,083% on average for the month). Overall, in December 2014, the price growth was 2.6%.

As previously reported by Rosstat, inflation in November rose by 0.8%, after 0.7% in October and 1.3% in November 2014. In annual terms inflation in November 2015 dropped to 15% from 15.6% in October 2015.

As from 2 to 8 December last year, prices rose 0.3%, while the average daily price growth for the 1st day of December was 0.06%.

Based on the data of Rosstat, inflation in annual terms as of 7 December this year could decline to 14.8% compared to 15.0% at the end of November. Last year with the beginning of the year prices rose by 8 December by 8.9%.

The contribution of sanctions against Turkey in inflation

Russia from January 1, 2016, prohibits the importation from Turkey of certain products, including tomatoes and cucumbers. According to the FCS, for the first 10 months of this year Russia imported from Turkey 300.5 thousand tons of tomatoes at $288 million and 17.3 thousand tons of cucumbers for $17.6 million

Earlier on Wednesday, Prime Minister Dmitry Medvedev said that sanctions against Turkey may add to inflation no more than 0.5 percentage points (PP). “In relation to the situation of Turkish market and Turkish supplies, to put it bluntly, this is not a very large amount of supplies. We wondered what it could lead. And, according to analysts, it is estimated can add in inflation of 0.2%, or from 0.2% to 0.5%,” – said he in an interview with Russian TV channels on Wednesday.

“In principle, it is quite a bit. Moreover, such fluctuations are associated with completely different processes that exist in the food market. Therefore, the surge in prices on this occasion will not be”, – stressed the head of the Cabinet of Ministers.

According to him, the state has control over what the providers of food, because the imposition of sanctions is always a very good excuse to raise prices. “Nothing is closed, – I notice that our sanctions against Turkey, tomatoes, as they say, don’t act, they will be entered from January 1 – if prices are rising, it is only as a result of price collusion”, – said Medvedev.