Food prices in November grew faster than inflation

The growth of prices for food products in Russia continues to outrun inflation for November products rose on average by 0.7%, while total inflation for the same month, according to Rosstat, amounted to 0.4%.

During the summer months and September, food prices decreased due to seasonal cheapening of fruits and vegetables, but in October the decline was replaced by growth. Fruits and vegetables for the second month of autumn rose by 2.5%, which resulted in the return of “food inflation” (+0,8%).

In November, the growth of prices for fruits and vegetables averaged the same is 2.5%. The growth of prices for fresh cucumbers and tomatoes was much stronger — by 31.2% and 25.7%, respectively. In addition, the bananas grew by 3.6%, grapes and potatoes 3%, onions — by 1.2%.

Simultaneously, the significantly increased price of butter (+4,3%), eggs (+3.9 per cent), cheese (+2.1%) and some dairy products (1.1%-1,7%).

Due to the increase in food prices the overall monthly inflation continues to stay elevated (0.4 percent), while in eight regions prices grew at least twice as fast. The strongest price increases were recorded in North Ossetia (+1.1%) and Adygea Republic (+1%), where the products went up by 2.4% and 1.3% respectively.

Among non-food items in November, the highest growth of cigarette (plus 1.3 percent), as well as certain types of medication (from 1.5% to 5.6%).

However, in annual terms, inflation in Russia slowed from 6.1% to 5.8%. Starting in 2016, the prices in Russia by 5%, for the year, according to the forecast of the Ministry of Finance, it should not exceed 5.8 percent.

In mid-October, the experts of the audit chamber warned about the risk of higher inflation in the latter months of 2016 in connection with the increase in food prices, lower oil prices and, as a consequence, the weakening of the ruble.