Interfax quoted the Federal State Statistics Service said that consumer prices were flat for the week August 2 to 8.

There had been 0.1% deflation the previous week for the first time in two years, and prior to that there were three straight weeks of zero inflation. YTD inflation was 5% as of August 8 for the first time equalling that of a year earlier when the inflation rate in the first half was lower than in 2011 but started to rise in July to August when instead of the typical seasonal slowdown in price growth inflation quickened due to drought and poor harvests.

The level of annual inflation was by August 8 down to 8.8% from 9% at the start of the month. The zero inflation is attributable to the seasonal decrease in food prices which for the week average 4.4% down. Prices for potatoes dropped 10.1% for cabbage 8.5% and for carrots 5.2%.

Buckwheat groat prices were down 0.9%, sunflower oil, millet, flour and cheese prices 0.1% to 0.2%. But egg prices ticked up 0.4% last week, lamb prices 0.9%, beef and margarine prices 0.3%. The cost of automobile gasoline rose 0.8% and that of diesel fuel 0.7%.

The Economic Development Ministry expects 2011 inflation of 6.5% to 7.5%, while the Central Bank is looking to keep it within 7%. An Interfax survey of analysts done at end July produced a consensus forecast of 8.1% inflation for this year.

(Sourced from Interfax)