Inflation rose to 5% in Bashkiria in December, mostly due to food prices

Annual inflation accelerated to 5% in Bashkiria in December 2020 after 4.6% in November. Food prices rose the most - by an average of 7.1%. As in Russia as a whole, this is primarily due to the lack of supply of certain types of food and the ruble weakening, analysts of the National Bank RB explain.

The prices for vegetables and fruit, flour and bakery products, meat and fish, as well as for sugar and eggs increased. For example, with a reduction in imported tomatoes' supply, domestic producers raised prices for their products. The rise in banana prices is associated with supply disruptions: in Ecuador, banana plantations were damaged due to a volcanic eruption.

The increase in prices for non-food products amounted to 4.2%. Growth of producers' costs due to the weakening ruble continues to affect here. As a result, goods with imported components are becoming more expensive: foreign cars, tools, equipment, household appliances, electronics. The increased demand amid the construction and repair boom continues to affect the rise in prices for furniture and building materials.

Prices for services increased by an average of 3.1%. The prices for public transport, trips to local holiday homes and medical services have increased. The spheres of foreign tourism, culture, and sports continue to restrain the situation: due to quarantine restrictions, prices for their services have been lower than a year earlier.

As a result, the annual inflation in Bashkortostan in December 2020 became higher than the national average (4.9%), but below the average in the Volga Federal District (5.3%). According to the Bank of Russia forecast, in 2021, inflation will be 3.5-4% in the country and will remain close to 4% in the future.