Most regions record rise in inflation in September

Annual inflation in September ranged from 3.2% in the Chukotka Autonomous Area to 12.5% in the Republic of Dagestan. It accelerated mainly on the back of one-off factors affecting the vegetable market, education services and outbound tourism. Also, pressure still came from sustainable factors related to demand growing faster than output.

Regional differences largely came as the dual result of varying impacts of the above factors and drivers of local importance.

Food prices in September accelerated growth across most Russian regions. That was mainly associated with a strong rise in prices for fruit and vegetables owing to delayed ripening, a reduction in crops of open-field vegetables and rising costs of vegetable production in greenhouses due to bad weather in some regions. Also, producer costs pushed meat prices higher.

Annual growth rates of non-food prices continued to rise in the month, but slower than in August. Most regions reported accelerated inflation in the car and furniture markets while prices for motor fuel grew slower.

Behind accelerated growth of service rates in the regions were mainly base effects in prices for education services. They went up at the beginning of the new school year more significantly than a year ago. Among other reasons were faster growing prices in international tourism, driven by high demand and limited supply.

All federal districts recorded a rise in inflation in September. The greatest acceleration was reported in the North Caucasian regions, traditionally affected by country-wide factors in food markets given their highest share of food in the structure of consumer spending. Annual inflation accelerated lowest in the Far East as non-food and services prices grew in September at more moderate paces.

For details on inflation in Russian regions, see the information and analytical materials on the Bank of Russia website.