The Ministry of Agriculture expects the dynamics of bread prices this year within the limits of inflation

The dynamics of bread prices this year will not exceed the level of general inflation, the Russian Ministry of Agriculture said.

Commenting on reports that bread in Russia will rise in price significantly, the Ministry of Agriculture added that the information is not true.

“The Ministry of Agriculture of Russia expects that the dynamics of bread prices this year will not exceed the level of general inflation,” – added in the ministry (quote from RIA Novosti).

Russia’s self-sufficiency in grain exceeds domestic needs and is 185.4% by the end of 2022. Last year, a record harvest was obtained, in connection with this, now prices for food wheat are lower than a year earlier, the report says.

The Ministry of Agriculture clarified that now the prices for flour from manufacturers are 15% lower compared to last year, and the cost of bread made from wheat and rye-wheat flour over the past year has not changed much in the wholesale and retail markets. A smooth increase in grain prices, according to the ministry, will not have a significant impact on the cost of bread. At the same time, the Ministry of Agriculture added that the main share of producers’ costs falls on such components as electricity, logistics, etc.

Previously Telegram-channel Baza with reference to sources among manufacturers from the regions wrotethat in Russia in autumn the price of bread will rise by 10%. The reasons for this dynamics are the consequences of withdrawing from the grain deal, as well as the falling ruble exchange rate and the impact of sanctions. The channel’s interlocutors said that they had to buy grain and flour 20% more expensive, and due to sanctions and the collapse of the ruble, the maintenance of foreign equipment increased by 50%.

Annual inflation in Russia in the week from August 8 to 14 accelerated to 4.66% after 4.43% a week earlier, prices rose by an average of 0.1% over the week, reported ministry of economic development.

Annual inflation in July, according to Rosstat, amounted to 4.3% after 3.25% in June. On a monthly basis, prices rose by 0.63%. As noted in the draft main directions of the Central Bank’s unified state monetary policy for 2024–2026, inflation will return to the target at the end of 2024 and will be close to 4% in the future. According to the regulator’s forecast, in the coming months, annual inflation will continue to rise against the background of rising price pressure, as well as the withdrawal from the calculation of low monthly growth rates in summer 2022.