Dynamics of prices in June was influenced by multidirectional factors
Annual inflation in June 2020 rose to 3.21% with multidirectional dynamics of prices annual growth rate of prices for goods increased slightly, to services — has decreased significantly, it is noted in the next issue of information-analytical review “the Dynamics of consumer prices”.
The gradual easing of the regime of self-isolation contributed to some restoration proposals and implementation of pent-up demand for certain goods and services. Overall demand remained weak as in connection with an event of lower revenue, and as a result preserve the application of restrictive measures (including, in the first place — to travel), and cautious consumer behavior. It had a disinflationary effect.
The main contribution to the increase in annual inflation contributed to accelerated growth of prices for fruits and vegetables, characterized by high volatility. In June of this year, this acceleration was due to the low base effect: in June of 2019 early arrival of the crop has led to a greater than usual reduction in prices of vegetables. While monthly growth in consumer prices (seasonally adjusted) in June slowed down.
In the future, the current prices will remain low in the conditions of restrained demand. At the same time, the annual inflation rate will increase in 2020 due to low base effect in 2019.
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