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Adverse global price situation, ruble stabilization to influence on inflation — Ministry

The ruble weakening occurred in April applied further pressure to the domestic market situation, while the May strengthening has not yet been recognized in consumer prices

MOSCOW, June 7. /TASS/. Competing factors will continue influencing the inflation move in Russia in June 2021. These are the remaining adverse price situation on the global market, the ruble rate stabilization, and the seasonal inflow of vegetables and fruits to the market, the Russian Ministry of Economic Development says in its review on Monday.

"Mixed factors will continue affecting the inflation dynamics in June. On the one part, the remaining negative price situation on the global market, on the other part — stabilization of the ruble rate and seasonal inflow of vegetables and fruits to the market," the Ministry noted.

The effect of the low base of last May further influenced on annual inflation figures (6% in May after 5.55%( in April), when the price growth for individual goods and services was restrained by lockdown measures. The effect of proinflationatory factors largely associated with the foreign economic situation became stronger in May.

"The foods price rally accelerated again on global markets in May (4.8% month-on-month in May after 1.8% in April, according to FAO data. Global prices continued growing for certain nonfoods, including ferrous and non-ferrous metals," the Ministry said.

The ruble weakening occurred in April applied further pressure to the domestic market situation, while the May strengthening has not yet been recognized in consumer prices, the Ministry noted.

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