Rosstat (for the first time in the modern history of Russia) recorded deflation in June. Prices decreased by 0.35%

In June, compared with May, prices in Russia fell by 0.35%, according to data Rosstat . In annual terms, inflation slowed down from 17.1% in May to 15.9%.

As RBC notes , prior to this, deflation in the first month of summer had not been recorded even once in the history of modern Russia, that is, since 1991. Usually, the seasonal price decline begins in July, when the harvest is harvested, and the supply on the food market is growing.

The main reason for deflation in June was the decline in prices for fruits and vegetables, which fell by 9.6%. Prices for food products as a whole decreased by 1.2%, for non-food products - by 0.4%. Only services rose in price, in this category prices showed an increase of 0.9%.

Investment Director of Loko Invest, Dmitry Polevoy, told RBC that the reasons for the price decline in June were the decline in consumer demand and the strengthening of the ruble, which affected the cost of goods that are sensitive to the exchange rate.

At the same time, according to Polevoy, "full-fledged deflation" does not threaten Russia. “We just have a temporary effect… slowing down inflationary processes after explosive growth since February,” the expert believes.

The probability of deflation remaining after August is extremely small, confirmed to Vedomosti. Yevgeny Mironyuk, an expert on the stock market at BCS Mir Investments,

• In March, after the start of the war and the introduction of the first sanctions, monthly inflation was 7.6%, and annual inflation was 16.7% (which was the highest since 2015).
• Later, Rosstat began to record either deflation or did not observe price changes. At the end, for the first time in seven weeks , inflation was recorded , prices for goods and services rose by 0.23%.