September 2020 saw a decline in the monthly consumer price growth (seasonally adjusted) to 0.25% compared to 0.38% in August, reports the latest issue of the ‘Consumer Price Dynamics’ information and analytical commentary.
Monthly growth in food prices decelerated due to high market saturation; service prices remained virtually unchanged. At the same time, non-food price growth continued to accelerate, including on the back of the weaker ruble.
Annual inflation rose by 0.09 pp to 3.67% primarily due to imported non-food goods or those with a high import component in price. Annual service price growth rate decreased and returned to the July level owing to the fact that, among other things, higher education organisations complied with the recommendations of the Ministry of Science and Higher Education to maintain tuition fees at the last year’s level. Annual food inflation slightly increased due to the base effect.
According to the Bank of Russia’s forecast, given the current monetary policy stance, annual inflation will reach 3.7-4.2% in 2020, 3.5-4.0% in 2021 and will stabilise around 4% later on.
See PDF here: https://www.cbr.ru/collection/collection/file/29354/cpd_2020-09.pdf
