1<\/p>\n
Prices in\u00a0Russia are falling <\/p>\n
For the first time in\u00a0three years, prices in\u00a0Russia fell over the course of\u00a0a\u00a0month. On\u00a0September 10, Russia\u2019s Federal State Statistics Service (Rosstat) reported<\/a> that consumer prices in\u00a0August were down 0.4 percent compared to\u00a0July.<\/p>\n This was one of\u00a0the strongest August results on\u00a0record, noted<\/a> the Telegram channel Kholodny Raschyot. Analysts at\u00a0Raiffeisenbank said<\/a> the decline \u201cexceeded all expectations,\u201d while the popular macroeconomics\u00a0Telegram\u00a0channel MMI\u00a0described<\/a> it\u00a0as\u00a0a\u00a0\u201ctriumph\u201d of\u00a0the Central Bank\u2019s policies. By\u00a0comparison, a\u00a0consensus forecast of\u00a0economists surveyed by\u00a0Interfax had projected<\/a> August deflation at\u00a0just 0.17 percent.<\/p>\n Our only hope is\u00a0you.\u00a0Support Meduza<\/a>\u00a0before it\u2019s too late.<\/p>\n The main driver was the seasonal drop in\u00a0fruit and vegetable prices. This year, the usual pattern was reinforced by\u00a0government efforts to\u00a0soften the impact of\u00a0the so-called \u201cpotato crisis.\u201d As\u00a0recently as\u00a0late May, potato prices were rising<\/a> at\u00a0three times the annual rate. But over the summer, as\u00a0the Telegram channel Faridaily reported<\/a>, the average price of\u00a0a\u00a0kilogram of\u00a0potatoes fell by\u00a0more than half. With Russia expecting a\u00a0\u201crecord\u201d harvest this year, another sharp spike now seems unlikely.<\/p>\n In\u00a0August alone, potato prices dropped 30 percent. Similar declines were recorded for beets (\u221226 percent), cabbage and carrots (\u221225 percent), onions (\u221222.3 percent), and tomatoes (\u221221.3 percent).<\/p>\n Eggs also saw a\u00a0steep price drop over the summer (\u221230 percent). At\u00a0the end of\u00a02023, they were one of\u00a0the drivers of\u00a0inflation. According to\u00a0Faridaily, the decline was largely due to\u00a0a\u00a0surge in\u00a0production. But efforts to\u00a0push down prices have had a\u00a0downside: wholesale prices fell so\u00a0sharply that raising chickens is\u00a0no\u00a0longer profitable for many farmers, forcing them to\u00a0cull their flocks.<\/p>\n Overall, excluding fruits and vegetables, food prices in\u00a0August rose 0.34 percent, while non-food goods were up\u00a00.42 percent. The services sector, however, posted a\u00a00.62 percent decline, with lower prices for passenger transport, hotels, health resorts, and tours.<\/p>\n The Kremlin\u2019s\u00a0grain spin Russia\u2019s\u00a0\u2018compact harvest\u2019 is\u00a0the latest entry in\u00a0its expanding euphemism playbook<\/a>The Kremlin\u2019s\u00a0grain spin Russia\u2019s\u00a0\u2018compact harvest\u2019 is\u00a0the latest entry in\u00a0its expanding euphemism playbook<\/a><\/p>\n 3<\/p>\n What\u2019s ahead for prices in\u00a0Russia?<\/p>\n Analysts surveyed by\u00a0the Central Bank in\u00a0late August and early September now expect<\/a> year-on-year inflation to\u00a0be\u00a06.4 percent by\u00a0the end of\u00a02025, compared to\u00a0the 6.8 percent they projected in\u00a0July. The Central Bank\u2019s own July forecast put<\/a> inflation in\u00a0the range of\u00a06\u20137 percent. As\u00a0of\u00a0September 8, the Economic Development Ministry estimated annual inflation at\u00a08.1 percent.<\/p>\n