July 5 2007, 09:10

Rapid price growth for produce caused record inflation in Russia

As of June 2007, the inflation in Russia amounted to 1%; it was 0.3% in June 2006, i.e. the inflation is thrice as high now than a year ago. To the analysts' opinion, the main reason for inflation was the rapid price growth for produce in June 2007.

The prices for vegetables, fruits and berries have increased 12.2% by June 2007; at the same period of time in June 2006 the 0.6% price decrease was observed. The experts of ""Agrooglyad: Vegetables and Fruits" weekly" think that such price dynamics for produce is predetermined by a great difference in the climatic conditions of 2006 and 2007 in Russian Federation.

"Spring was cold in 2006, so that the prices for fruits and vegetables kept high for a long period of time, and they started to dramatically decline in June when the temperatures and the supply of early vegetables and berries grew", Andriy Yarmak, the Manager of "Agrooglyad: Vegetables and Fruits" project tells. "But, the winter 2007 was very mild, and the spring was warm in Russia and other countries of Eastern Europe. Produce started to enter markets earlier than usually. However, the season of the produce growth shifted as well, as a result, a certain deficit for vegetables, fruits and berries was observed on market in June, the prices started to grow", the expert says.

The specialists of the periodical forecast that another price decline for vegetables and fruits will start in July and will last till September.