Annual inflation accelerated to 5.15% in August

Annual inflation in August was 5.15% after 4.3% in July and 3.25% in June. informed Rosstat. In monthly terms, prices rose by 0.28% compared to 0.63% a month earlier.

In Moscow and St. Petersburg, consumer prices increased by 0.2% over the month, and inflation of 0.4% or more was recorded in 36 regions. Prices increased the most (by 1.9%) in the Primorsky Territory due to rising prices for non-food products.

Food products fell in price by 0.06% compared to July. This dynamics is due to a significant (minus 5.96%) reduction in the price of fruits and vegetables. White cabbage, for example, fell in price by an average of 29.6%, onions – by 27%, potatoes – by 23.1%, carrots – by 20.4%, tomatoes – by 17.5%, and beets – by 13 ,8%. At the same time, pork and chicken meat, on the contrary, increased in price by 5.6%, chicken legs – by 4.5%, and culinary poultry products – by 2.4%. Oranges rose in price the most (+21%). In annual terms, prices for food products increased by 3.23%.

In the segment of non-food products, prices increased by 1.14% compared to July, and by 3.58% compared to July 2022. The largest increase in prices was recorded for aspirin (+5.6%), metal tiles (+4.6%), diesel (4.1%) and jewelry (+3.5%). At the same time, smart watches fell in price by 3%, monitors – by 1.4%, and women’s shoes – by 1.2%.

Services in August fell in price by an average of 0.32% compared to July, but in annual terms they increased in price by 9.54%. Thus, trips to the UAE increased in price by 12.2%, to Turkey – by 2.4%, to individual countries of Southeast Asia – by 3.2%, and individual countries of Central Asia – by 2.3%. Holidays on the Black Sea coast and Crimea have risen in price by 13.2%, and accommodation in Russian hotels on average across the country has risen in price by 0.3%-1.2%.

Annual inflation in July amounted to 4.3% after 3.25% in June, Rosstat previously reported. In monthly terms, prices increased by 0.63%. According to the Central Bank’s forecast, annual inflation will continue to rise in the coming months against the background of increasing price pressure, as well as the departure from the calculation of low monthly growth rates in the summer of 2022. The Central Bank expects that inflation by the end of 2023 will be at the level of 5–6.5% per annum and will return to target at the end of 2024.

On August 15, the Bank of Russia raised the key rate by 3.5 percentage points to 12%. The reason was increased inflationary pressure and inflationary expectations, which are pressured by exchange rate dynamics. The regulator did not rule out a further increase in the rate in the event of increased pro-inflationary risks. The next scheduled meeting will be held on September 15.