Lower vegetable and fruit prices observed for the first time in March

According to the Bank of Russia information and analytical commentary 'Consumer Price Dynamics' (No. 4 of April 2016), in March 2016 the annual inflation declined to 7.3% and for the first time vegetable and fruit prices were lower than the previous month (a 1.3% reduce).

The prices growth was curbed by increased supply in the internal food market (including vegetables and potato) resulting from the last year's rich crop and import substitution development.

However, the inflation expectations remain high meaning that inflation risks are still in place.

A moderate consumer prices growth is expected to be persistent in April. Still, the annual inflation in April influenced by the low base will not see any significant changes and might be temporarily higher in May and June. Providing no new shocks take place, the annual inflation will renew its decline.