Regional Economy report: why inflation slows down in regions and how companies transform their business
In June, inflation decreased in almost all Russian regions, as compared to May. This was owing to a considerable strengthening of the ruble and a contraction in consumer demand. In the current situation, households opt to save funds in bank deposits rather than consume.
Export-oriented companies are forming finished product inventories and reducing output, simultaneously searching new target markets. Contrastingly, import-dependent businesses are facing a significant shrinkage of stocks, which forces them to actively look for new suppliers. Industries focused on domestic demand continue to build up their order portfolios and increase the utilisation of their production capacities. More details are available in the report Regional Economy: Commentaries by Bank of Russia Main Branches.
The new issue of the report covers such special topics as companies’ inventories and consumer activity.