Russia: Deflation Sinks Teeth into Food Prices

In Russia, food prices have taken a slide.

Read this Sept. 27 article from the Russian news agency, TASS:

Consumer prices in Russia declined 0.5% in August 2017, while average inflation across the EU nations was 0.2% in the same period, the Russian national statistical agency Rosstat reported on Tuesday.

Foods prices in Russia fell 2.4% and declined 0.1% in the EU in August, Rosstat said.

Sugar, jam, honey, chocolate and sweets prices dropped 0.3% in Russia and stayed flat in the European Union. Fish and seafood prices grew 0.3% in Russia and remained unchanged in the European Union.

Meat and meat products prices actually stayed flat in Russia but rose 0.3% in average across the EU nations.

Dairy products, cheese and eggs prices declined 0.3% in Russia but grew by 0.3% on average in the EU within the reporting period, Rosstat reports.

Bread and cereals prices stayed flat in Russia and increased by 0.1% in the EU respectively.

Here's a link to the above article:

EWI's Global Market Perspective is not surprised by the decline in Russia's food prices.

The May Global Market Perspective noted:

According to X5 Retail Group, Russia's largest grocery store chain, deflation is already affecting a fifth of its offerings. And, strikingly, the Russian public seems to be coming to grips with the trend. According to Levada Center, an independent Moscow-based polling organization, consumers overwhelmingly expect inflation to slow down rather than accelerate. “That’s a result we haven’t had for 25 years,” says one department head. (Bloomberg, 4/12/17)

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