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Russian food prices stall as seasonal produce offsets basic staple hikes
['Angela Antonova', 'Andrey Nikolaev', 'Lyuba Lulko', 'Guy Somerset']
PravdaReport - Business
Russian food prices stall as seasonal produce offsets basic staple hikesRussia's food price growth slowed to 0.05% during the week from July 28 to August 3, according to data from the Ministry of Economic Development.
While official statistics indicate near-zero inflation, the downward pressure is driven primarily by seasonal declines in the cost of vegetables and eggs rather than a broad reduction in consumer prices.
Seasonal Factors and Inflation OutlookThe current dip in headline indicators is attributed to two primary factors—the mass entry of seasonal vegetables into the market and a temporary decrease in fuel costs.
This effect is characterized as temporary; once the harvest period ends, fruit and vegetable prices are expected to rise again, potentially triggering a new cycle of general price increases.
Valeriy Kozlov, regional economist and analyst of budgets and territorial development: [The current near-zero inflation is masked by seasonal vegetable prices, while basic products continue to grow in price.]