Page 58 - RusRPTAug22

United Nations (FAO) decreased by 2.3% to 154.2 points, reported the Ministry of Agrarian Policy and Food. However, the index, which tracks monthly changes in world prices for a basket of food commodities, remained 23.1% higher than in June 2021. The FAO explains that the index’s decrease results from negative dynamics in global prices for vegetable oils, grains, and sugar. However, dairy products and meat have become more expensive.
4.2.1 CPI dynamics
Inflation in Russia slowed down in June, especially as the increase in the prices of vegetables and fruits slowed down.
The y/y increase in consumer prices was 15.9% in June, after being 17.1% in May. The slowdown in inflation stems especially from the slowdown in the rise in prices of vegetables and fruits, which explains more than half of the slowdown in annual inflation.
The slowdown in food inflation (to 18% from a year ago) is mainly explained by the better harvest season in the southern parts of Russia than last year, but also by the fact that Russia has removed import duties on some imported vegetables and fruits. In addition, the export of foodstuffs such as sugar has been restricted since the start of the war in Ukraine.
The decrease in price pressure for goods other than food is explained, among other things, by the fact that the buying panic
58 RUSSIA Country Report October 2020 www.intellinews.com