The Central Bank in the first ever recorded decline in prices for vegetables in March

Fruits and vegetables in Russia fell by 1.3% in March compared with the previous month, according to information-analytical comments of the Bank of Russia “Dynamics of consumer prices”. According to the regulator, in comparison with March 2015 fruits and vegetables when it began to cost, on average, 5.1% less. The Central Bank notes that fruit and vegetable production fell from the previous month for the first time in the entire history of observations.

The prices for food are constrained by large amounts of supply on the domestic market of food, including vegetables and potatoes, noted the Central Bank. This was the result of last year’s harvest and development of import substitution.

According to the regulator, inflation in March of the current year compared to the same month in 2015 decreased to 7.3% (in February, this value was 8.1%) . The lowest was an annual increase in prices in the food market to 5.2%, what contributed to it is the dynamics of prices for fruit and vegetables.

The lower inflation the Central Bank explained to a moderately tight monetary policy, weaker demand and a stronger ruble.

Previously Rosstat reported that in March there was a decrease in the prices of the majority of observable kinds of fruit and vegetable products. For cucumbers and tomatoes, it amounted to 9.7% and 7.9%, respectively. Lemon, onions, cabbage and potatoes fell in price by 1.4-3.4 percent. The price of garlic increased by 8.7%, for grapes — by 4.8%, carrots, apples, bananas and dried fruits — to 1.4-2%.