Due to the increase in utility tariffs, the weekly inflation rate in Russia accelerated to 0.4%

Moscow. July 5. INTERFAX.RU – Inflation in Russia for a week from 27 June to 3 July was 0.4%, said Wednesday Rosstat. The previous five weeks, prices rose 0.1% in the week. The acceleration of price growth in the first week of July traditionally is due to indexation of tariffs for housing and communal services from 1 July.

According to Rosstat, the tariffs for communal services on the average in the country since July 1 increased by 2.3-and 4.1% for different types of services for water removal by 4.1% and hot water supply – by 3.7%, the least on heating by 2.3%. The tariffs for electricity the national average grew by 3.1%, cold water supply – by 3.3%.

Since the beginning of July inflation to 3 July was 0.3%. Average daily price growth for the 3rd day of July amounted to 0,107% (the indicator is unreliable due to indexation of tariffs from 1 July). Over the same week last year (from 28 June to 4 July) inflation equaled to 0.4%, including from the beginning of July is 0.3%.

Thus, despite the acceleration in weekly inflation, annual inflation remained at the level of the previous week and amounted to 4.2% (based on weekly assessments, Rosstat for June, monthly data for June statslib will publish later this week).

Over the last week has significantly slowed down the growth of prices for fruit and vegetables – up to 0.7% from 2.0% the previous two weeks. Slowed growth in the price of cabbage to 4.0% from 12.1% and 13.5% for the previous two weeks. The price of apples rose by 3.8%, carrots – by 3.5%. On the other hand are falling potato prices by 5.2% over the week, continued lower prices for cucumbers – by 6.1%, tomatoes – by 2.8%.

Sugar over the past week became more expensive by 1.6%, fish – by 0.2%. Prices of gasoline and diesel fuel practically have not changed. At the same time the price of buckwheat decreased by 1.2%, eggs by 0.9%, margarine – on 0,2%.

Official forecast Ministry of inflation for 2017 is 3.8%. First Deputy Chairman of the Central Bank Ksenia Yudaeva at the beginning of June said that the forecast of 3.8% is “realistic”. The head of the Ministry Maxim Oreshkin also in early June in the state Duma said that the Ministry expects inflation for the year in the range of 3.6-3.8 percent.

The consensus forecast of “Interfax”, prepared by results of poll of economists in late June – early July, growth in the current year at 3.9%.