Page 30 - RusRPTFeb22

4.2 Inflation
Annual inflation in Russia almost hit 9% in January. From January 22 to 28, inflation rose to 8.82% in annual terms. Food prices continue to drive inflation; in the same week, overall food prices rose by 0.31% and fruits and vegetables by 1.14%. Prices for vegetables such as cabbage, cucumbers, and tomatoes have risen by more than 10% since the beginning of the month. According to Finance Minister Anton Siluanov, inflation will peak in soon and prices will stabilize by the end of the year.
Prices for agricultural products are likely to continue to increase, at least in the short term. For the first time since 2018, agricultural production has decreased in Russia–by 0.9%. The largest decline was in crop production (-1.4%). Russian producers of carbonated drinks, juice, and coffee are raising prices, some by more than 20%. This is likely due to the global rise in the price of sugar. Dairy producers warned they would need to increase prices by 10% to keep up with costs. However, the Ministry of Agriculture is allocating 12bn rubles ($157.9mn) to support bread and dairy producers and ensure stable prices for these staple products.
In 2021, inflation was the highest it has been in six years across the Russian economy. Prices were up 8.4% by the end of the year, more than twice the country’s 4% target and the highest it has been since 2015 (when it was 12.9%). Food prices were especially affected; these goods rose by 10.6% over 2021 according to Rosstat. However, the price of sugar rose by only 4%
30 RUSSIA Country Report February 2022 www.intellinews.com