Inflation

Food-price growth slowed to 14.1% in April from 15.3% in Q1, according to the Federal Statistics Service (Rosstat). Prices probably rose 0.5% in a month after increasing 0.4% in April. Consumer prices rose 4.6% this year through May 23.

Russia’s inflation rate was probably unchanged in May as the impact of last year’s drought on food prices faded. The annual inflation rate remained at 9.6% for a second month. The central bank expects inflation to slow significantly in the second half of 2011 and has a full-year target of between 6% and 7%.

Source: www.freshplaza.com

Economists believe that 2011 inflation in Russia will become even more dependent on food prices. After Rosstat (Russia’s State Statistics Office) studied Russian expenditure patterns, it revised the inflation calculation basis. The share of food in the expenditures structure has risen from 37,97% to 38,5%. The increase is basically due to a dramatic price growth on cereals, fruit and vegetables, which took place at the end of 2010.

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