OREANDA-NEWS. In April 2016, annual inflation stood at 7.3%, like a month earlier. The stabilisation results from the low base effect. In April, prices for fruit and vegetables fell less considerably than last April when prices registered the all-time maximum fall, data from 'Consumer Price Dynamics', the Bank of Russia's informational and analytical comment, suggest (No. 5, May 2016).

The international tourism market experienced similar effect in April. In addition, prices for petrol and transportation services showed somewhat higher growth rates.

Nevertheless, the price dynamics were still driven by modest consumer demand, ruble appreciation and generally favourable conditions in agricultural markets. Prices for the majority of goods and services continued to show slower annual growth rate.

In May-June this year, monthly consumer price growth is expected to remain low. However, given the low base, a temporary increase in annual inflation cannot be ruled out. In July it will resume a downward movement, the comment says.