UPDATE: Statistics registers record 0.5% deflation in August

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MOSCOW, Sep 5 (PRIME) -- The Federal State Statistics Service has registered a 0.5% deflation in August after inflation of 0.1% in July, the service said on Tuesday.

In annual terms, inflation slowed down to 3.3% in August from 3.9% in July, and in January–August 2017 consumer prices grew 1.8%.

Consumer goods and services became 0.1–1.3% cheaper in 72 regions of Russia in August thanks to a 0.3–3.8% fall of food prices. But prices grew 0.1% and more in eight regions of Russia, including a 0.7% increase in the republic of Yakutia due to a 2.8% growth of tariffs for services.

Prices for food contracted 1.8% in August after a 1% contraction in July, and the annual consumer price inflation decreased to 2.6% from 3.8%, the service said. Excluding prices for fruit and vegetables, food prices remained flat on the month in August, with non-food goods becoming 0.1% cheaper.

Prices for cabbage plunged 42.6% on the month in August, with prices for potatoes, carrots, onions and tomatoes falling 26.2%–28.5%. Prices for beetroot, grapes and bananas fell 15.6–18.6%. Buckwheat prices contracted 2.9%, but rice, oatmeal and pearl barley became 0.1% more expensive.

Prices for poultry, flour, chocolate, coffee, and tea fell 0.4%, and prices for milk decreased 0.3%.

Cheese prices rose 1.5%, and prices for caviar, salmon, living fish, jam, honey and ice-cream went up 0.5–1.1%.

The central bank said in a statement that deflation happened due to a seasonal and temporary contraction of prices for fruit and vegetables.

“The market condition in September–October will largely depend on weather conditions. Annual food inflation may fluctuate due to a late start of harvesting and base effect, which may result in changes in general inflation. At the end of 2017, inflation will be close to the target (of 4%),” the regulator said.

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