Inflation in Russia expected to slow down further in August

Russia said Wednesday it expects inflation to slow down further to 4.4 to 4.5 percent year on year in August.

“Month-on-month deflation is possible with an accelerated decline in prices of fruits and vegetables,” the Economic Development Ministry said in a report.

Inflation slowed significantly to 4.58 percent year on year in July from 4.66 percent a month earlier, the ministry said.

The slowdown was mainly caused by a smaller-than-expected increase in housing and utilities taxes, it said.

A decline in prices of fruits and vegetables due to an early harvest prompted by favorable weather conditions also contributed to the slowdown, it added.