Inflation drivers are common in most regions

The majority of Russian regions recorded an increase in annual inflation in February, ranging from 2.48% in the Chukotka Autonomous Area to 9.69% in the Republic of Dagestan. Most regions reported identical factors driving inflation, including the gradual recovery of demand along with rising input costs, the worsening epizootic situation, increased global prices for certain products, and a decline in the harvest of a number of field vegetables.

The growth of food prices sped up most significantly in February, predominantly due to a faster rise in meat and egg prices. The pressure of input costs on prices which had been augmenting over the previous months due to higher global grain prices and a weaker ruble was exacerbated by the impact of increasingly more frequent bird flu and African swine fever episodes. Potato and carrot prices also demonstrated considerable growth rates, pushed up by a poor harvest and a fast expansion of the portion of more expensive imports in the market.

Inflation accelerated the most in the North Caucasus where food products account for a larger percentage in the consumer basket and the countrywide factors thus have a stronger influence on food markets. Moreover, price increases were most notable in the same product groups as in other regions, including meat products, eggs, potatoes, carrots, and bananas.

Inflation sped up the least in the Far East which, in contrast to the countrywide trends, recorded an annual decline in prices for food products, primarily vegetables. Such price changes were the result of the resumed fruit and vegetable supplies from China and the increased supply of domestic greenhouse products.

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