Higher food prices instigate inflation in October
In October 2021, annual inflation grew to 8.13% which was substantially caused by higher food inflation. This is reported in the Bank of Russia information and analytical commentary Consumer Price Dynamics.
In particular, a reduced harvest sped up a sharp rise in prices for field vegetables. The annual growth rate of prices for animal food products (meat and dairy products) also increased, reflecting the cost-side pressure including due to the earlier price growth in global markets. Higher food product prices can seriously affect household inflation expectations.
Monthly values (seasonally adjusted) and annual indicators of sustainable price dynamics also continued to rise. That was indicative of higher inflationary pressure including due to a negative impact of the bottlenecks in global production and logistic chains on supply.
Inflation is expected to be in the range of