Deflation hits Russia

Russia has recorded deflation for the first time since 2017, a decline in the prices of goods and services. Consumer prices fell by 0.1% from July 23 to 29, according to Rosstat.

A similar downward trend was recorded four years ago, during the period from August 28 to September 3, 2017. The prices of cucumbers and potatoes fell the most, by 4% and 3.3%, respectively, RBC reports. Carrots and onions, sugar, sunflower oil and buckwheat also became cheaper. However, along with a decrease in food prices, experts recorded a slight increase in the price of gasoline, which rose 0.1%.

According to official figures, inflation stood at the 0.2% level throughout July, and at 2.7% since the beginning of this year. The Ministry of Economic Development expects inflation to rise no higher than 4.3% by the end of the year; the Bank of Russia even predicts it might be down to 4% again at the beginning of 2020. At the same time, Russians’ real disposable incomes continue to decline, falling by 1.3% in the first half of 2019.

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