Russian economic development ministry sees disinflation trend

Russian economic development ministry sees disinflation trend

Russia’s Economic Development Ministry sees a disinflation trend and does not expect major fluctuations, Minister Maksim Reshetnikov told reporters on Thursday, adding that in monthly terms the growth of consumer prices slowed down from June 1 to 28 compared with May.

"Inflation currently equals 0.65% from June 1 to 28. In May inflation was 0.74%, whereas now it is 0.65%, [June result] will clearly change slightly, though we do not expect major fluctuations. We see a disinflation trend," he said.

Moreover, the FAO (Food and Agriculture Organization) index went up by 4.8% in May, while in June the ministry expects a reverse on the main product groups, including wheat and vegetable oil, Reshetnikov added.

The ministry still expects deflation in August, he noted. "We assume that the growth of inflation starts to expire. <…> We still expect deflation in August," TASS cited the minister as saying.