Inflation speeds up in most Russian regions in May

Annual inflation in May ranged from 3.31% in the Nenets Autonomous Area to 8.12% in the Republic of Kalmykia.

The growth of non-food prices continued to speed up, spurred by a further expansion of demand exceeding the potential to increase supply. This acceleration was exacerbated by higher costs. Specifically, prices for construction materials were rising considerably faster amid higher global prices for metals and timber.

Higher input costs sped up the growth of prices for meat and milk products, which significantly increased food inflation. Inflation in services remained almost unchanged in May, although prices in individual segments of this market were changing diversely. In particular, the annual growth rate of prices for housing and hotel services was up, while that of prices for transportation and overseas tourism edged down.

Inflation accelerated across all federal districts. The rise was most considerable in the North-Western Federal District where a substantial rise in the annual growth rate of food prices was aggravated by a faster increase in service prices boosted by the expanding demand for domestic tourism amid restrictions on foreign travel. Inflation rose the least in the North Caucasus where the rise in food prices sped up more moderately because the market of greenhouse vegetables was highly saturated. However, overall inflation and food inflation rates in the North Caucasus are still the highest in Russia.

For details on inflation in Russian regions, please refer to the information and analytical materials published on the Bank of Russia website.