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Russia records deflation for second week

Staff Writer |
Russia has recorded deflation for the second week from Aug.ust 2 to 8, with consumer prices decreasing by 0.1 percent, the country's statistical office said.

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"For two weeks deflation has been a seasonal factor. Prices for fruits and vegetables decreased by 3.5 percent, with prices for fresh tomatoes down 10.7 percent and for cucumbers 8.2 percent," said Rosstat.

However, prices for sugar increased by 0.6 percent, for buckwheat 0.2 percent, it said. Overall, the consumer prices have increased by 3.8 percent since the beginning of 2016.

Russia's central bank predicted that inflation would drop to 5-6 percent by the end of 2016, to less than 5 percent in May 2017, and to 4 percent in late 2017.

Russia recorded a double-digit annual inflation rate last year due to tumbling oil prices, coupled with the weight of Western sanctions and price hikes, which have only abated in recent months.

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