Growth in food prices accelerated inflation in half

The decline in food prices was replaced in Russia by the growth. In October food prices rose on average by 0.8%, whereas for the previous month, prices fell 0.1%, follows from the materials of Rosstat.

The main reason for the return of “food inflation”, according to authorities, was a sharp increase in the prices of a number of types of vegetables and fruits. For example, tomatoes in October rose by 42.3%, cucumbers — by 41.2%, oranges — by 19.1%. Simultaneously, the increased price of eggs (plus 8.8%) and dairy products (plus 1.7 percent), including butter (plus 4.2 percent), milk (plus 2.1%), sour cream (plus 1.8%) and cheeses (plus 1.7 percent).

The growth of food prices resulted in the acceleration of General inflation. In comparison with September it has doubled from 0.2 to 0.4%. At the same time in several Russian regions, prices jumped twice as much, and in Stavropol and Crimea, and at all three times.

Among non-food goods in October, prices increased the most gas fuel (plus 5.4%) and cigarettes (plus 1.4 percent), as well as certain types of medication (from 2 to 5%).

For the first ten months of 2016, inflation in Russia amounted to 4.5%, while a year earlier by the end of October, it was 11.2 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.

The government’s bill on amendments to the 2016 budget provides for a reduction in the planned rate of inflation to 5.8%. To reach this level in November—December 2016 price should increase not more than 1.3%.