Inflation in Bashkiria remains at 4.1 percent

UFA, 27 November 2019. /Bashinform News Agency, Galina Bakhshieva/ translated by Tatiana Aksyutina/.

In October, annual inflation in the Volga Federal District (VFD) was 3.5% after September's 3.7%. Its slowdown is recorded for the fifth month in a row, and the Volga Federal District shares the first place with the Ural Federal District as the district with the lowest inflation in Russia.

According to experts, the decrease in inflation in October was promoted, first of all, by the expansion of supply in certain food markets. Besides, the restrained growth of demand and strengthening of the ruble had their effect. The most significant slowdown in price growth was demonstrated in food products.

Annual food inflation in the Volga Federal District decreased to 3.8%. This is primarily due to the prices for meat products in the context of expanding supply.

As predicted, sugar prices continued to decline in October, reaching 22.3% per year.

Meanwhile, in the district, there was an acceleration in the growth of fruit prices. It primarily related to the prices of oranges, bananas, and lemons.

Annual non-food inflation decreased to 3.2% in the district, which was due to the restrained growth of demand and the ruble strengthening.

Thus, the growth of prices for cars slowed down, which traditionally had a stronger effect on inflation in the district than in Russia as a whole, since their share in the consumer basket of Volga residents was higher. The motorization of the district’s population is higher than the national average. The growth rate of prices for clothes, furniture, household appliances decreased.

Similar factors, as well as increasing competition in the market, affected the decrease in annualized prices for equipment. Among them, there were smartphones, computers, cameras, and TV sets.

The annual inflation in the service sector did not change in the Volga Region in October and remained at the level of 3.6%. Against the background of a decrease in the Bank of Russia's key rate, growth in prices for banking services slowed down. In October, they cost the same as a year ago.

At the same time, the cost of consumer loans - one of the components of banking services - decreased in 11 regions of the Volga Federal District. The annual decline in prices for insurance services amounted to 6.5%.

In the Volga region, the growth in prices for passenger transport services accelerated. Mostly this happened due to lower prices than in October last year for air and railway tickets.

In 11 out of 14 regions of the Volga Federal District, annual inflation in October slowed down compared to September. In the remaining three regions - Bashkortostan, Chuvashia and the Kirov region - inflation remained at the level of September. For example, in Bashkortostan, this figure was 4.1%.

In Russia as a whole, annual inflation continued to decline and amounted to 3.8% in October. Moreover, the slowdown in inflation was faster than predicted.