Official: inflation in Crimea at the end of 2023 was lower than in the Southern Federal District

Annual inflation in the Republic of Crimea in December 2023 slowed to 7.6% after 7.9% in November. This is lower than the value for the Southern Federal District. The dynamics of inflation in the region are mainly explained by the statistical effect of the high base associated with the indexation of utility tariffs. The last time in Crimea it was held in December 2022 ahead of schedule, instead of July 2023. In December 2023, prices for these services did not change.

In the food segment, the annual increase in egg prices accelerated most noticeably. In December, due to outbreaks of bird flu in some regions, the supply of eggs to the republic decreased. In addition, due to the summer weakening of the ruble, poultry farmers’ costs for imported feed, vaccines, and equipment increased.

The same price dynamics were observed for cucumbers and tomatoes. The reason is the increased costs of greenhouse farms for electricity, fuels and lubricants, imported seeds, fertilizers and plant protection products.

In December, the annual increase in prices for furniture and domestic cars accelerated in Crimea. The summer weakening of the ruble led to an increase in the costs of manufacturers and suppliers for the purchase of imported goods, materials and components for their production. For the same reason, the decline in prices for smartphones in annual terms has slowed down.

According to the forecast of the Bank of Russia, taking into account the current monetary policy, annual inflation will drop to 4–4.5% in 2024 and will remain close to 4% in the future.