Non-food sector inflation accelerated by 0.8% in Bashkiria in April

The annual growth of non-food product prices amounted to 0.8 percentage points in the republic and accounted for 5.11% in April 2021. Analysts of the National Bank of Bashkiria explain this by a limited supply of certain goods and a recovery in demand for consumer goods.

The main pro-inflationary pressure in the non-food products group continues to be constituted by a rise in prices for construction lumber, new and used foreign cars, and furniture. The main causes continue to persist: for construction lumber - a decrease in supply in the domestic chipboard market against the background of increased exports; for cars - a shortage of the most popular foreign cars due to a decrease in their production because of electronic components shortage. The increase in the growth prices for frame furniture was also associated with an insufficient supply of board products (chipboard, laminated chipboard, MDF) along with increased sales in furniture stores.

The increase in materials and transportation costs influenced the rise in certain clothing types, knitwear, footwear, and accessories. Purchase prices for cotton showed growth of 20–35%, knitted fabric, and materials from petroleum products (polyurethane, from which eco-leather, insoles, and soles are made) - of 20%. As consumer demand recovers, costs have been translated into final prices.

The acceleration in the growth of prices for electrical goods, large household appliances, television and radio goods, dishes, and equipment was due to several factors at once. Firstly, this was an increase in the cost of production due to the rise in prices for metals, polymers, and transport logistics from Asia to the European part of Russia. Secondly, there was a shortage of semiconductor microcircuits, which the manufacturers of household appliances faced after the automakers and manufacturers of smartphones and other gadgets. Thirdly, this was a high consumer demand, which, in turn, was associated with an increase in residential real estate transactions and its arrangement with new furniture, dishes, and household appliances.

Medicines rose in price least of all: domestic pharmacy is increasing production volumes, but the demand for its products began to fall.