Price growth slows down in most Russian regions in April
The majority of Russian regions saw an increase in annual inflation in April, ranging from 1.94% in the Chukotka Autonomous Area to 7.98% in the Republic of Daghestan. The recorded slowdown was mainly because a year earlier food prices rose noticeably during this period.
In April, food inflation slowed under the influence of last year’s high base, when there was a surge in demand and in prices for several food products after the imposition of lockdown (pasta, cereals, meat products, and citrus fruits). The annual growth rate of non-food prices continued to rise in April due to the persistent expansion of demand coupled with the rising costs of producers. This was in turn associated with a faster pick up in world prices for metals, coal, oil and petroleum products, and for construction materials.
The annual growth rates of services prices increased mainly due to the changes of prices for utilities and transport services. In southern and central regions, growth in prices for hotel services and apartment rent was driven up by elevated demand for spending vacations in Russia. More expensive railway tickets due to the effect of the low base of the previous year made a significant contribution to the acceleration of inflation in many regions.
All federal districts noted a slowdown in inflation. The biggest slowdown was in the regions of the North Caucasus, where the factors common for the whole country traditionally manifested the most in the food markets due to a larger share of food in the consumer basket. The least slowdown was noted in the regions of Siberia, where the effect of countrywide factors on food price changes was the smallest and where the most appreciable pick-up in non-food inflation occurred (mainly because of the rise in prices for motor fuel and passenger cars).
For more details on inflation in Russian regions, see the information and analytical materials published on the Bank of Russia website.