Economy Ministry sees Russia’s inflation at 0.2% in July

MOSCOW, Jul 8 (PRIME) -- Russia’s inflation may speed up to 0.2% in July from zero in June, and slow down to 4.5–4.6% in annual terms in July, the Economic Development Ministry said in a research note on Monday.

The Federal State Statistics Service said that inflation slowed down to 4.7% in June in annual terms from 5.1% in May, and in monthly terms it fell to zero.

“The estimate of the Economic Development Ministry shows that inflation amounted to 0.2% month-on-month at the end of July, and it should slow down to 4.5–4.6% in annual terms,” the research note read.

Such a rapid slowdown of inflation shows weak dynamics of combined demand in the economy, and monetary inflation also shows that as the factor’s dynamics fell to their lowest point since July 2018, the ministry said.

On July 3, First Deputy Chairwoman of the Central Bank Ksenia Yudayeva said that the slowdown of inflation in June was triggered by a good weather, which accelerated harvesting of vegetables. The factor could continue in July but was a short-term one, she said.

The ministry’s official forecast for inflation in 2019 stands at 4.3%.

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