In Russia, inflation in June hit its highest level since 2012
Price increases in Russia have accelerated sharply. According to June figures, inflation reached its highest level for that month in the past 13 years. The situation was most significantly influenced by rising prices for gasoline and diesel fuel.
Annual inflation has also accelerated, exceeding 6% for the first time in several months. Experts note that against the backdrop of the fuel crisis, the rate of price growth has been significantly higher than is typically seen at the start of summer.
Russia recorded its highest June inflation rate since 2012. According to Rosstat, consumer prices rose by 0.87%in June. The last time such a figure was recorded for this month was 13 years ago. On a year-over-year basis, inflation accelerated from 5.31% in May to 6.01% in June. This is the first noticeable acceleration since the January increase in the value-added tax.
Economist Dmytro Polyovyi noted that the beginning of summer is traditionally considered a period of slow price growth. However, the situation has changed this year. “The rate of price growth was nearly double the usual June figure of 0.44%,” he said. According to statistics, since the early 2000s, June inflation has been higher only four times—in 2001, 2008, 2009, and 2012.
Analysts cite the fuel crisis as the main reason for this spike. It was the sharp rise in gasoline and diesel prices that had the greatest impact on the overall price level. Investment banker Yevgen Kogan noted that gasoline prices rose by 6.9% in June, while diesel prices rose by 7.1%. This is the largest monthly increase in many years. The last time such rates were recorded was back in 2009–2010.
In addition to fuel, food prices also rose significantly. According to Rosstat, vegetables and fruits rose in price by an average of 4.2% over the month. Overall, food prices increased by 0.65%. Specifically:
- meat and poultry — by 1.2%;
- sugar — by 2.6%.
Analysts at the company “Hard Numbers” believe that if current inflation rates are extrapolated to an annual figure adjusted for seasonal variations, they have already reached about 12%. This indicates a further acceleration in price growth in the Russian economy. This is reported by Russian media.
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