Inflation Accelerates in 80 Russian Regions - Central Bank

© ЦБ РФ

Consumer prices rose faster in June across most regions of Russia, according to the Bank of Russia. Higher inflation rates compared to May were recorded in 80 out of 85 federal subjects (administrative divisions). The central bank attributed the acceleration mainly to one-off factors.

The largest contribution to the inflation spike came from food price increases. Following a more pronounced seasonal decline in vegetable and fruit prices in April and May, a correction occurred in June, leading to a rise in food prices in most regions.

In the non-food segment, the key factor was the increase in gasoline and diesel fuel prices. The Bank of Russia estimated that the rise in fuel prices was due to reduced production volumes and temporary supply disruptions. However, excluding fuel, non-food goods became cheaper on average in nearly 40 regions.

In contrast, the services sector showed a slight deceleration in inflation. More than half of the regions saw lower price growth for services compared to May, and in some areas, average prices even fell. The central bank attributes this trend to more restrained demand for domestic tourism. Nonetheless, the regulator emphasizes that service prices are still rising at a relatively high pace.

The Bank of Russia reaffirmed its commitment to maintaining a monetary policy aimed at achieving consistently low inflation across all regions.