Inflation rate Russia

Russians may spend up to 40% of the expenses on food

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Russians are currently spending about 36 percent of all the expenses on food, but many specialists forecast that this number will grow up to 40 percent. The Russians have started saving and changing their shopping preferences to discount and convenience stores.

According to the study “Russian Food Retail: Current Situation and Prospects”, conducted by VTB Capital, the number 40 percent is significantly higher than the highest figure in European countries. For example, in Germany, the UK and Italy it is about 12-13 percent, in Poland and Turkey it is about 23 percent.

According to the same study, imported food products amount to about 20 percent. As for the fruits the number is about 40 percent, for vegetables it is less – 25 percent.

“One in four consumers now shops at discount and convenience stores,” Ilona Lepp, director of work with retail chains of Nielsen Eastern Europe.

At the same time, the increase in revenue of Dixy retail network (mostly convenience stores) is 29.5 percent in October. During the first 10 months of the year, the increase in revenue was 25.8 percent. The similar situation is with the Russian retail network Magnit – the increase in revenues is a 36.14 percent increase in October, and 30.66 percent increase for the first 10 months of the year. Retail representatives said that they did not noticed consumption decrease.

In July, food inflation in Russia was recorded at 11.4 percent, according to Russia’s Federal State Statistics Service and confirmed by Infoline-Analytics.

www.fruitnews.info

Euro exchange rate to ruble surpasses record high

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The official dollar rate for Friday has increased by 1.24 rubles up to 47.66 rubles, the rate of euro has increased by 1.72 rubles up to 59.62 rubles – that is a historic record. The dollar-euro basket (0.55 dollars and 0.45 euros) amounted to 53.04 rubles.

On Thursday, the ruble fell to its minimum for the last three weeks as a reaction to OPEC meeting. The reason for the weakening of the ruble is decreasing oil prices. Brent cost fell below $76 per barrel.

Representatives of several OPEC countries – Saudi Arabia, UAE, Kuwait and Qatar – said on Wednesday that they would not propose decreasing the volumes of oil production at the meeting. As Reuters reports, according to some analysts, if the OPEC countries did not agree on the significant reduction of oil production, oil price could fall to $60 per barrel.

According to expert consulting firm IHS Brushan Bahri, it is unlikely that OPEC will agree to reduce oil production significantly, although there is some possibility of surprise too.

www.vedomosti.ru

Real wages decreasing in Russia

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Economist Dmitry Prokofiev in his interview to the internet portal dp.ru told about the current economic situation on the Russian market. For the first time since November 2009, there is a wage decrease in Russia. 5 years ago, the growth of wages was presented as a sign of overcoming the economic recession, but now, for some reason, no one says that the wages decrease is a symptom of a new recession.

Wages have been decreasing for 2 months already. On an average, in September wages went down by 1%, in August – by 1.2%, but in some industries they decreased by 4-5%.

Retail trade also slowed down, in the first quarter it increased by 3.6%, in the second – by 1.9%, and in the third – only by 1.4%.

At the same time, inflation is growing. In September, the official inflation rate in Russia was 8% (that is the highest rate for the last 3 years). The fastest growth of prices can be seen in food sector. During January-September 2013, the inflation rate in this sector was 2.2%, this year it is 7.1%. Car production in Russia, the growth of which we saw recent years, in September fell by 18%.

The Russians began to buy less. According to Romir agency, in September 2014 everyday consumer spending decreased by 6% in nominal terms compared to August 2014. Non-food consumer goods sales decreased by 17%. At the same time, the Russians began to buy more electronic devices, while prices for them are still the same.

Even the Russian market of luxury goods decreased (the recession if 2008-2009 almost did not influence it). In 2013, it was 10th in the world and fifth in Europe, but this year, as analysts predict it will decrease by 18%.

www.dp.ru

Inflation in Russia under control

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The Central Bank of Russia expects inflation to slow down in the second half of 2013 and will be 5-6 %. If this happens, the rise of consumer prices in the current year can be a record low for the last twenty years.

Current inflation is expected to slow down not only in 2013, but also in the beginning of next year. The risks, however, still remain.

According to Federal State Statistics Service, inflation in Russia since the beginning of the year has reached 4%. The growth dynamics of prices for goods and services corresponds to the last year dymamics. In 2012, in the second week of July the inflation was 4%.

From 2 to 8 July, prices increased by 0.2%. From the beginning of July there was 0.5% growth. Such a large figure can be easily explained by the indexation of tariffs that happened July 1. According to Federal State Statistics Service, electricity prices rose by 1.4%, for certain types of public services – by 0.7-1.5%; and rents in state houses increased by 0.5%.

If forecasts becomes true, it will be a new record, the last record was in 2011, when the increase of consumer prices in the country was the lowest in the history of the new Russia – 6.1%. In 2012, inflation amounted to 6.6%.

Source: www.retailer.ru

Russians began to spend more money again

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According to the research of analytical company”Romir”, Russians’ spending at food and consumer goods increased by 3% in September 2012 compared to August 2012 and returned to the level of April 2012 .

Compared to September of the last year, expenditures increased by 13% in nominal terms, that is twice more than inflation rate.

In August 2012, consumer spending began to go up and the same tendency could be observed in September 2012.

However, it is too early to speak of changing of the situation in the country – October data should be studied to draw some conclusion.

Analysts blame the seasonal surge in consumer activity, which resulted in the prices growth. In September, consumer spending usually grow because of a new school year.

According to some analysts, the Russians become freer from the fear of possible economic crises, and they began to spend more money again despite the fact that, as shown by other polls, a significant part of the population do not have enough money and had to economize on food and cut daily expenses.

Source: www.newsru.com

Since January consumer prices in Russia have grown 5 times more compared to Europe

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For the first half of this year, consumer prices in Russia have grown by 4.5%. On the average, in the EU consumer prices have increased by 0.9% for the same period.

In the U.S., Canada and Turkey, consumer prices have grown by 2%, in the Republic of Korea by 0.7%, and in Norway the deflation rate was 0.4%. The only country, where the inflation rate was higher than in Russia is Belarus, the inflation rate there  is 12% for the period.

According to the Federal State Statistics Service of Russian Federation, the inflation rate of the food segment was one of the highest of all the other sectors in Russia: food prices rose by 5.9% in Russia, in the EU – by 1.6%.

And although price growth for vegetables decreased more than twice, it was still quite high – 8%.

Prices for fruits in Russia fell by 2% in August, in the EU decline in prices for the same period was 3.5%.

Source: www.fruitnews.ru

Russian Retail Sales Slow To 18-Month Low As Inflation Bites

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Russian retail sales grew in July at the weakest pace in 18 months after faster inflation curbed consumer purchasing power, threatening to undercut a mainstay of the country’s economic growth this year.

Receipts at merchants rose 5.1 percent from a year earlier, slowing from June’s 6.9 percent to the weakest pace since January 2011, the Federal Statistics Service in Moscow said in an e-mailed statement today. That missed all 15 estimates in a Bloomberg survey, which forecast 6.2 percent growth.

Russian real wages grew 10.2 percent in July from a year earlier, the service said. That matched the downwardly revised figure for a month earlier and missed economist forecast for 11.2 percent growth. Retail sales from a month earlier advanced 1.6 percent, also missing the median estimate of 2.6 percent.

“The softening in retail sales was to a large extent concentrated in food sales, likely a consequence of rising food inflation,” Vladimir Kolychev, head of research at Societe Generale SA’s OAO Rosbank (ROSB) unit in Moscow, said by e-mail. The expansion in non-food categories was “still robust” at 8.6 percent, he said.

Unemployment remained at 5.4 percent for a third month, the lowest level since at least 1999. Economists had forecast an increase to 5.5 percent, according to the median of 11 estimates in a Bloomberg survey.

“The steady unemployment rate is the only bright spot in the data, generally suggesting that domestic demand is clearly losing steam,” Dmitry Polevoy, chief economist at ING Groep NV in Moscow, said in a note. “With food inflation clearly accelerating, real wage growth easing and retail lending also losing steam, both food and non-food retail sales are set to weaken further in the second half.”

Source: www.bloomberg.com

Price growth of fruits and vegetables in Russia: the prices have never grown so fast

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According to the Federal State Statistics Service, only during 1st and 2nd of July, the inflation rate grew up by 0.5%: the residential rate fee went up by 6.2%, electricity fee – by 4.7%, water and heating fees – by 2.4% and 3.2% respectively. Surface transportation fee went up by 4%. Vodka prices grew by 1.7%, chicken and sugar prices – by 0.7% and 0.5% respectively, according to the report of NEWSru.com with reference to newspaper Vedomosti.

But in June the inflation rate began to rise faster. As the Federal State Statistics Service reported, in June 2012 the price increase rate was 0.9% compared to 0.2% in June 2011. The reason of high rate of the inflation in June was the price growth of fruits and vegetables, as Oleg Zasov, director of the Department of Economic Development, explains. In general, food prices grew by 1.6% in June, but if fruit and vegetables were not taken into consideration, the food inflation was only 0.3%, according to the Federal State Statistics Service.

Prices for vegetables and fruits grew by 13.4% compared to May prices and they went up by 28.8% since the beginning of the year: in June the onion price grew by 39.6%, cabbage price – by 28.6%, potato price – by 24.4%, carrot price – by 21.9%, beet price – by 18.3%.  Lemon price grew by 20.0%, and grapes, pear and orange prices – by  6.3-9.8%.

Andrej Belousov, minister of the Department of Economic Development, called the price rise of fruit and vegetables abnormal. The prices for fruit and vegetables have never grown so fast, and one of the reasons is that the prices for the last year harvest were quite low, meanwhile the stock came to an end in May, and the prices began to rise.

Another reason of the price growth is the drought in Russia’s south regions in May: the harvest of vegetables, especially cabbage, was less than it had been expected before, as Dmitry Rylko, CEO of the Institute of Agricultural Market Studies, told, but he also said that the situation is going to return to its usual state in the nearest future. Dmitry Rylko and Andrej Belousov believe that in July price growth of vegetables and fruit is going to slow down, and then, in August and September, prices may decline.

But while there is no domestic harvest, the import rate is quite high, and it went up because of the depreciation of the ruble, as Evgenij Gavrilenkov, Troika Dialog chief economist, said. According to the Federal State Statistics Service, the general inflation rate grew by 3.8% since the beginning of the year.

Source: www.fruitnews.ru

Russia’s Inflation Rate Higher than in the Ukraine and Belorussia

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Rosstat (Russia’s State Statistics Office) with reference to Eurostat reported that in January 2011 inflation in Russia was the highest in Europe. In January 2011 the inflation rate was as high as 2.4%. The average inflation rate in 2010 was reported to be 8.8%.

As for food prices, during January-February 2011 they have risen by 3.2%, the annualized price growth in 2010 was 16.4%.

Source: http://top.rbc.ru/economics/

Fruit and Vegetables Inflation Rate in Russia Reached 54%

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Fruit and vegetable index of Fruit-Inform shows that cost of fruit and vegetables for the Russian consumer in mid November was on average 54% higher than in the same period of last year.
The largest increase of prices was registered for traditional vegetables and potatoes. Their main set was up in price by 141% comparatively with the last year! Glass-grown vegetables were on average 26% higher in price than a year before, fruits – only by 5%. Fruit and vegetables keep on increasing in cost in Russia. Within the last week, prices for fruit and vegetable produce grew on average by 5%. All main categories of fruit and vegetables were increasing in price.

Source: www.lol.org.ua