Bashkiria has lowest inflation in Volga Federal District

UFA, 30 July 2018. /Bashinform News Agency, Galina Bakhshieva/ translated by Tatiana Aksyutina/. By the end of June, annual inflation in Bashkortostan reached a record low level of 1.1%. This is not only a new historical minimum but also the lowest in the Volga Federal District. In general, in Russia, annual inflation in June was 2.3%, the National Bank RB for Ural Chief Directorate of the Central Bank of Russia reports.

Food products prices continue to have the main effect on inflation in the republic, which are in the negative zone for the second consecutive month, that is, lower than the figures for the same period in 2017.

Thus, in June this year, the products cost 2.1% cheaper than in June 2017. This trend is due to the fact that in the early summer of the last year, prices for vegetables and fruit increased significantly due to unfavorable weather conditions. This year the situation improved noticeably. The prices for buckwheat (-40%), potatoes (-36%), garlic (-35%), cabbage (-35%), onions (-31%), oranges (-18%) fell more than others. At the same time, prices for millet (+ 35%), beets (+ 18%), ice cream (+ 11%) and margarine (+ 10%) increased.

Meanwhile, inflation for non-foods accelerated - from 2.3% in May to 3% in June. This trend is still influenced by the increase in fuel prices.

At the same time in Bashkortostan communication equipment and TV-radio products dropped in price.

The annual rate of growth in prices for paid services stabilized in June at 3.8%. This was to some extent due to the continued increase in the availability of financial services: banking services decreased by 14% and insurance services by 6%.

Besides, the cost of flight and long-distance trains tickets decreased, and of commuter rail, on the contrary, grew, the National Bank sums up.