Russian consumer prices dip for 6th straight week

MOSCOW: Consumer prices in Russia declined for the sixth week running, data showed on Wednesday, as the rubles appreciation in the past few months and a drop in consumer demand weighed on the pace of price growth.

The consumer prices index dipped 0.13 percent in the week to Aug. 15 after easing 0.08 percent a week earlier, the federal statistics service Rosstat said.

Inflation remains high but is slowing after prices of nearly everything, from vegetables and sugar to clothes and smartphones, have jumped sharply since Feb. 24 when Russia sent tens of thousands of troops into Ukraine.

The CPI extended its decline even after the central bank slashed its key rate by 150 basis points to 8 percent last month and indicated it was ready to consider further monetary easing to limit the depth of economic recession.

A separate set of Rosstat’s data showed on Wednesday that the producer price index, the gauge of prices that suppliers are charging their clients, fell sharply in annual terms to 6.1 percent in July from 11.3 percent in June, well below levels above 30 percent seen in April.

High inflation has been the key concern among households for several years as it dents living standards, something that this year will be aggravated by recession in the economy.

Russia’s economy will contract less than expected and inflation will not be as high as projected three months ago, the Economy Ministry forecasts seen by Reuters showed, suggesting the economy is dealing with sanctions better than initially feared.

So far this year, consumer prices have risen 10.72 percent compared with a 4.69 percent increase in the same period of 2021, Rosstat data showed. 

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