The Central Bank expects a further decline in food prices

© RIA Novosti / Alexander Krauledat in photobacteria at the counter with fruit in supermarket Tape. Archival photoThe Central Bank expects a further decline in food prices© RIA Novosti / Alexander Krajevima the image Bank

The Bank of Russia expects a further decline in prices of selected food products in September, despite a significant reduction in the influence of seasonal effect, told RIA Novosti in the press service of the regulator.

Rosstat reported on Wednesday that the weekly deflation in Russia has made a record 0.2 percent, since the beginning of the year to 28 August, consumer prices rose by 1.9%. This week the price reduction was not observed at least since the beginning of the current decade.

«Expectations of inflation for August has not changed, the Bank of Russia still expects a deflation associated with seasonal cheapening of food products. In September, the seasonal effect will be reduced significantly, but is expected to decline in the prices of individual commodity groups mainly among food,» said the Central Bank.

This year Rosstat has started to record a week-long deflation from the end of July, three weeks in a row, it remained at the level of 0.1% and the previous week dynamics of the prices was zero. Last year, Rosstat reported on twice a week of deflation — also in the last week of July and first week of August. Prior to this, deflation, is also 0.1%, in Russia was observed in September 2011.

Earlier, the Central Bank said that expected in August close to zero inflation. The economic development Ministry forecast inflation in Russia in 2017 — 3.8%, the target of the Central Bank — 4%.

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