Falling prices of goods in Russia: is it worth rejoicing

According to a number of experts, deflation will be observed in Russia for the first time in a long time. The reasons for this phenomenon are not only the seasonal decline in prices for vegetables and fruits due to the appearance of a new crop on the shelves, but also the decline in consumer demand, import problems, as well as the strengthening of the value of the dollar.

Deflation may last all summer, however, economists note that this indicates rather an unhealthy state of the economy.

According to the data cited by Rosstat, sugar prices have fallen the most recently (2%), as well as eggs and milk (0.6 and 0.4%, respectively). If deflation in Russia is fixed by the end of June, it will be the first such case in the history of the new Russia. Earlier, the Ministry of Economic Development did not exclude the possibility of deflation in the first summer month.

According to preliminary forecasts, by July-August of this year, the deflation rate may be up to 0.5-0.6%.

But, according to some experts, deflation may still not happen in July due to the annual increase in the cost of tariffs for housing and communal services. Others believe that the fall in prices will be typical not only for the summer months, but will also capture September.

The Ministry of Economic Development predicted inflation in Russia this year at the level of 17%, Izvestia reports.