The Central Bank explained the slowdown in the growth of food prices in April

by time news

The pace of growth in food prices in April slowed down on an annualized basis due to the fact that in the same month of 2020 there was a sharp rise in prices for pasta, cereals, meat and citrus fruits, the Bank of Russia said in a statement.

Earlier, Rosstat reported that annual inflation in April was 5.53% after a record 5.79% since 2016 in March. The cost of food products rose 6.55% after 7.58% a month earlier.

“Food inflation slowed down in April under the influence of a high base last year, when there was a surge in demand and prices for a number of food products after the introduction of a self-isolation regime (pasta, cereals, meat products, citrus fruits),” the regulator explained.

At the same time, prices for non-food products in April rose by 6.16% after 5.92% in March. This was due to the increase in producer costs due to the accelerated growth of prices in the world for metals, coal, oil, products of its processing and construction materials with a continuing increase in demand, the Central Bank said.

The cost of services increased by 3.3% in April after 3.2% in March. This was mainly due to the rise in prices for housing and transport services. For example, in the southern and central regions of the country, where, against the background of the inability to travel abroad, the demand for recreation has increased, prices for hotels and apartment rent have increased. In addition, last year, when the coronavirus restrictions were in force, the prices for train tickets were significantly lower than now, the regulator noted.

In general, according to the Central Bank, inflation has slowed down throughout Russia. It was least of all in the Chukotka Autonomous Okrug – 1.94%. The highest is in Dagestan – 7.98%.

Earlier today, Russian President Vladimir Putin said that prices for socially important products are growing against the backdrop of an unstable global environment. Prior to this, Prime Minister Mikhail Mishustin called the greed of some manufacturers and retail chains one of the reasons for the rise in food prices. According to him, not wanting to lose profit, many manufacturers have raised domestic prices following world prices.

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