Inflation continues to fall in Bashkiria for second month in row

In June 2022, annual inflation in the republic decreased to 16.7% after 18.8% in May. The slowdown was influenced, in particular, by the weakening demand for certain types of goods and services, the growth in the supply of vegetables and fruits, and the strengthening of the ruble.

Inflation dropped the most in the non-food segment, from 22.7% in May to 19.7% in June. The rise in prices for cars, building materials, as well as clothes, shoes, and medicines has slowed down.

Inflation in the food group decreased from 20.8% to 18.8%. This was mainly due to the expansion of the supply of vegetables and fruits. Both import deliveries and domestic production have grown.

In the services sector, inflation fell from 10.5% to 9.5%. The increase in the number of flights from Ufa to Turkey and the restoration of direct flights to the UAE led to a slowdown in the growth rate of prices for foreign tourism services. Against the background of the traditional summer decrease in the number of visitors this year, cinemas lost part of the audience also due to the lack of world premieres at the box office - as a result, they were forced to reduce ticket prices.

In the country as a whole, inflation was at the level of 15.9%. According to the forecast of the Bank of Russia, by the end of this year, it will be 14-17%, in 2023 it will slow down to 5-7% and return to the target of 4% in 2024.