Vegetable and fruit prices bring inflation down in November
According to the 12th issue of Consumer Prices, information and analytical notes by the Bank of Russia, rich harvest and ramp-up of greenhouse vegetables had a positive effect on vegetable and fruit prices in November: they went down year-on-year.
Annual inflation slowed down to 5.8% in November 2016. Monthly consumer price growth (seasonally adjusted) stayed at the level of October, which is lower than the average indicator for previous months. The trend goes along with the plans to reach the 4% target in late 2017.
Weak demand and temporary factors such as ruble exchange rate and increased food supply shaped moderate price growth. Inflation slowdown is expected to continue in December 2016 in line with the Bank of Russia baseline scenario.
Influenced by one-off factors, inflation decline might be unsteady. Decrease in inflation expectations, slower than expected, keeps inflation risks in place. Bank of Russia consistent moderately tight monetary policy will support the achievement of the inflation target.