Official: inflation in Crimea was accelerated by prices for eggs, chicken meat, milk and cottage cheese

In the Republic of Crimea, inflation accelerated to 7.9% in November after 7.5% in October. This was influenced by increased costs from suppliers and manufacturers, as well as reduced supply of certain products.

The prices for eggs and meat and dairy products have changed especially noticeably in the region. There are several reasons: due to the summer weakening of the ruble, the costs of livestock farmers on feed additives, veterinary drugs, equipment and spare parts increased. As a result, the costs of raw material processors increased. In addition, the republic’s production of chicken meat and the volume of its supplies from other regions temporarily decreased.

As a result, in November, price growth for eggs, poultry, pork, sausages and minced meat, sour cream and milk accelerated, and cottage cheese became more expensive in annual terms.

The dynamics of prices for non-food goods and services generally remained stable. Due to high demand exceeding supply, car factories more actively transferred the increased costs of production components and logistics into the cost of cars. As a result, prices for domestically produced passenger cars accelerated.

From December 1, fares for travel in reserved seat carriages were indexed. The increase was reflected in the cost of transportation already in November, since tickets, as a rule, are purchased in advance. This led to an increase in the annual growth rate of railway fares.

According to the Bank of Russia’s forecast, tightening monetary policy will limit the excessive expansion of domestic demand and its pro-inflationary consequences. Inflation in 2023 will be near the upper limit of the range of 7 – 7.5%. 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.