Page 48 - RusRPTOct22

Rosstat published the production breakdown of Q2 GDP, which was revised to -4.1% y/y (from -4.0%). The decline was driven by sharp falls in wholesale and retail trade, manufacturing as well as some services sectors.
But mining barely contracted at all and the construction, IT, financial services and real estate sectors all expanded. The impact of sanctions has been much more narrow than expected and while the energy sector is likely to come under more pressure, large parts of the economy will continue to hold up relatively well and Capital Economics says the fall in GDP this year will be around 3% (previously 7%).
4.2 Inflation
On-year inflation remains high in Russia. August consumer prices were up by 14% y/y despite a slowdown in the month-to-month rise in prices.
Prices for food and non-food goods climbed by 16% y/y, while prices for services were up by 10%.
In individual product categories, the biggest price rises were seen for sugar (45%), detergents and cleaning agents (33%), grain products (30%), pasta (25%) and butter (24%).
48 RUSSIA Country Report October 2022 www.intellinews.com