Seasonal deflation traditionally slowed price growth due to lower prices for fruits and vegetables. In July, according to the National Bureau of Statistics (NBS), food prices fell by 1.1%.
The most notable declines in average consumer prices for food were recorded for vegetables—down 9.0%—and chicken eggs—down 2.8%. At the same time, average consumer prices rose for vegetable oil (0.6%), milk and dairy products (0.4%), wheat flour bread (0.2%), and fruit (0.2%).
However, food deflation was offset by rising prices for non-food goods (by 0.5%) and services provided to the public (by 0.2%), which reduced the disinflationary effect.
In the services sector, average consumer prices for passenger transportation rose by 1.1% over the month (including international passenger air transportation, which rose by 4.8%), utility and housing services—by 0.8% (including water supply and sewerage—by 0.6%).
In the non-food sector, the most significant increase in average consumer prices was recorded for fuel and motor fuel—up 1.4%—which led to higher prices for diesel fuel (up 3.9%), coal (by 3.0%), and gasoline (by 1.0%).
On a year-over-year basis, utility rates and energy resources continue to lead the way. OVER THE PAST YEAR (July to July), food prices rose by 5.2%, non-food goods by 6.6%, and services by 7.4%.
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