State Statistics Committee: No seasonal deflation was observed in June

In June, monthly inflation in the consumer sector amounted to 0.9%, Spot reported referring to the State Statistics Committee.

In previous years, seasonal deflation was observed at this time. So, in June 2021, it was 0.2%, by the same amount prices decreased in June 2020. In the first summer month in 2019, deflation reached 0.5%.

Price growth has amounted to 6.5% since the beginning of the year, significantly exceeding previous figures. The average monthly growth has accelerated one and a half times compared to last year’s level, equaling 1.1%.

Inflation in annual terms also rose to 12.2%. So far, it remains below the 14.2% reached in June 2020 amid a hard lockdown, but exceeded the 2021 level by 1.3%.

Leadership in price growth over the monthly distance was returned to foodstuffs – over the month they have risen in price by an average of 1.1%. Since the beginning of the year, food has risen in price by 8.9%, and in 12 months – by 16.5%.

It is noteworthy that deflation in past years was provided precisely by food. However, now cheaper vegetables and legumes (-14.7%), as well as fruits and nuts (-3.1%) also partially restrained the price growth.

Excluding these categories, monthly food inflation amounts to 3.8%. Cereals (+9.3%), as well as sugar and confectionery (+7.6%) are leading by a wide margin. Milk, eggs (+2.3%), butter (+2.1%) and meat (+1.2%) have gone up significantly.

Of the individual products, sugar has risen the most – by 21.7% in June and by 60% over the past year. The second place is occupied by flour – 13% and 44% respectively.

Prices for manufactured goods also rose stronger than in previous years – a growth rate of 0.9% was recorded for the month alone. Since the beginning of the year, inflation has amounted to 5.8%, and since last June it has reached 10.7%.

Here, the growth leader was the segment of household appliances and household items. Over the month, they rose in price by 1.1%, and over the year – by 11%. Clothing and footwear rose in price by May by 0.5-0.9%, and at an annual distance, the price increase was 8.3-8.7%.

In the services sector, inflation reached 0.8% for the month, but slowed down to 6.8% at an annual distance. One of the most significant was the increase in prices for hotel services – 2.5% in June. At the same time, for example, air travel became cheaper by 1.6%.

In 2021, inflation, according to official data, was reduced to 10%. For this year, the Central Bank set a target of 9%, but against the backdrop of hostilities in Ukraine and the crisis in Russia, the forecast was revised to 12-14%.