OREANDA-NEWS. Annual inflation slowdown to 7.2% in July in general is in line both with the Bank of Russia last year’s expectations and with the current prediction as well, the latter stating that inflation in 2016 will experience a setback to 5-6%. This is what the 8th issue of the Bank of Russia Consumer Price Dynamics information and analytical commentary says.

According to the assessment, the monthly inflation cleared of the seasonal factor has not changed after its growth in April-June. This is due to some local factors in food markets which are characterised with high price volatility. Under these conditions, July witnessed a further increase in the food price growth including fruit and vegetable prices. Such dynamics is of a temporary nature and the food inflation is expected to slow down in the months to come. This forecast is supported by favourable grain crop predictions, as well as by global food market conditions.