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that started after the start of the war in Ukraine, in which Russians bought computers and household appliances, for example, has eased. The export of some goods such as construction materials abroad is also limited. The strong exchange rate of the ruble has slowed down inflation because imports have become cheaper.
After the start of the war in Ukraine, inflation in Russia was high in March-April, but has since started to slow down. The only main block of overall inflation where the inflation rate rose slightly in June is services.
The increase in the inflation rate of services is mainly explained by the increase in the cost of transport services, because after several countries closed their airspace to Russian aircraft, Russian airlines have been under pressure to raise their prices. On the other hand, in some regions, Russian airlines have increased their offer, for example, because Russians vacation at home has increased, while traveling abroad has become more difficult.
The inflation of services has also been increased by the fact that telecom operators can no longer get foreign technology and equipment as easily, which has caused them to pass on the increased costs to consumer prices.
4.2.2 PPI dynamics
Producer prices in Russia increased 11.3% y/y in June of 2022, easing from a 19.3% gain in the previous month. It was the
59 RUSSIA Country Report October 2020 www.intellinews.com