In July 2022, annual inflation in the Moscow Region decreased to 16.55% after 17.56% in the previous month.

As noted in the Central Federal District of the Central Bank of Russia, the decrease in inflation was influenced by the increase in the supply of a number of goods, the strengthening of the ruble in recent months, as well as restrained demand dynamics.

A significant decrease in inflation was observed in the segment of food products – up to 15.89% in July from 17.05% in June. The increase in imported supplies of vegetables and fruits, as well as the expansion of the assortment on the Moscow Region counters at the expense of domestic products, allowed slowing down the growth of prices for potatoes, apples, pears, oranges, bananas. Cabbage, carrots and beets have fallen in price.

The increase in production by livestock farms in the Moscow Region led to a slowdown in the annual growth of prices for pork and poultry. In particular, the reduction in livestock feed costs affected the slowdown in the growth of prices for milk, cottage cheese and sour cream.

Non-food inflation in the Moscow region also decreased. Against the background of less active demand and the strengthening of the ruble in previous months, the correction of prices for passenger cars continued after a surge in March, as a result, the growth of car prices slowed down. The prices of car tires behaved similarly, as demand also decreased.

After the exhaustion of the spring rush demand for furniture and certain types of building materials in the Moscow Region, the slowdown in the growth of prices for boards, bricks, cement continued, metal tiles fell in price. Particle boards have fallen in price in annual terms, whereas in June their price was still higher than last year. In addition, this dynamics was influenced by an increase in the volume of lumber on the domestic market, including due to export restrictions.

In general, in Russia in July 2022, annual inflation decreased, but remained high (15.10%). In the baseline scenario, the Bank of Russia expects that by the end of 2022 it will decrease to 12.0–15.0%. Taking into account the current monetary policy, annual inflation will be 5.0-7.0% in 2023 and will return to 4% in 2024.

"Of course, seasonality has an impact on economic processes. But in general, the business situation has more or less stabilized. Severed business ties and logistics have either been restored or alternatives have been found, the key rate has returned to normal indicators. In addition, the Moscow Region offers a fairly wide package of measures to support entrepreneurs, which contributes to a rather optimistic mood in the business community," said Vladimir Golovnev, the Commissioner for the Protection of the Rights of Entrepreneurs in the Moscow Region.