According to a new report by Ria Novosti on Sunday, the only European nation to see the prices of its food fall last month, referred to as deflation, was Russia. The news agency based its calculations on data from the national statistics offices of 40 countries in Europe which disclosed their May food inflation data in early June.
The data showed that in Russia the prices of food and non-alcoholic beverages dropped by a record 1.12% year over year. It was the second month in a row that the prices of these items displayed deflation. The had previously fallen in April by 0.22%. Only once before has deflation for food and non-alcoholic beverages been seen in Russia – in June of 2018, when prices fell 0.42%.
Dmitry Vostrikov, the head of Russia’s Association of Food Producers and Suppliers told RIA Novosti the the reorientation of logistics routes and the settlement of trade in more national currencies are largely responsible for the fall in prices. Russia was forced to implement both measures amid the imposition of Western sanctions which it faced following its invasion of Ukraine in February of last year. Vostrikov also pointed out that the growth in prices was also suppressed by a record harvest of grain and oil seeds.
At the same time, the prices of food in other European nations soared last month, although at a slower pace than it had been in most countries, according to RIA Novosti’s research.
Among other nations in Europe, the highest food inflation was seen in Hungary, at 34%. Estonia Serbia, Slovakia, and Ukraine, saw yearly price-growth rates over 20%.
Only four nations saw their inflation rates come in under 10%, Portugal (9.4%), Cyprus (8.4%), Switzerland (5.3%) and Belarus (4.4%).